Attributing the 4-per cent plunge of the BSE Sensex to global factors, Union Finance Minister P. Chidambaram on Friday said the market should not be “so sensitive” to data flowing from the U.S. but reflect Indian conditions.
“I have no doubt in mind, when calm is restored in the market, people will begin to understand India market indicators must basically reflect Indian market conditions. They should not be so sensitive to data coming out of the U.S.,” he said on sidelines of an event in New Delhi.
The BSE 30-stock index, Sensex, fell nearly 770 points or 4 per cent and the rupee breached the 62 level against the US dollar on concerns among large investors of capital curbs. The gold prices too shot up by Rs. 1,310 per 10 gram to Rs. 31,010.
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Worried over the developments, Mr. Chidambaram said: “I think this is time for calm; this is time for reflection and let’s see what happens next week.”
Observing that nothing has happened in the Indian economy between Wednesday and Friday morning, the minister said, “nevertheless the markets have taken a hit and that is reflected in the rupee also. We have taken a number of measures... a number of measures are being taken. Let’s wait to see what the first quarter growth rates are.”