Click to play videoNew Delhi: Finance Minister P Chidambaram has been assuring that India is fortified against the freefall that markets worldwide are suffering. However, many feel that more than assurance, the government should come out with concrete effort to prevent further sliding of the Indian Stock Exchanges.
On Monday morning, Indian investors were bracing themselves for another roller coaster ride in the market arena, when the finance minister decided to deliver his pep talk again. His message was a repeat of what he has said over the days- all is well with the Indian markets and the economy.
“There is no reason at all to act in haste or give room for panic. If all the players in the economy remain confident and take informed decision, then I have no doubt that India will weather the current storm and emerge stronger,” assured the Finance Minister, P Chidambaram.
The FM's words acted as the much needed booster for markets after Friday's freefall. The Sensex zoomed more than 800 points and the Nifty gained more than 6.5 per cent.
While many believe that the rally in the global markets had more to do with the market upsurge but investors on Dalal street finally had something to smile about.
One investor said, “What I feel is that this is only momentary. If we are able to keep this momentum otherwise after couple of days this will again pull down and we will see the same level.”
But experts differ on the issue.
“And this is a pain that will remain in the global situation particularly in US, Europe and Japan. My view is the Indian market will begin to see some sort of a bottoming out when this stock number, and we can debate whether it is 40-50-60 billion, but that is the kind of range when we see the stock number come to. And three things can make that go down. Number 1 - decline in levels. Number 2 - rupee depreciation and Number 3 – outflows,” said Financial Expert Uday Kotak.
It is estimated that investors lost more than 6.6 lakh crore rupees thanks to the market crash last week.
Investors are looking for more in the troubled times. Instead of assurances, policy actions like a rate cut and a relaxation of overseas borrowing norms are the need of the hour to ease the liquidity crunch, hour feel experts.
(For updates you can share with your friends, follow IBNLive on Facebook, Twitter and Google+)
 |
 |
 |
|
displayed with permission. Use of the CNN name and/or logo on or as part of CNN-IBN does not derogate from the intellectual property rights of Cable News Network in respect of them.