The Hindu Business Line : Left accuses rightist forces of engineering market crash

THE capital market crash has created its own ripple in the political stage with the Left parties accusing the "rightist forces" of engineering the slide to create a negative sentiment. "This is a deliberate attempt on the part of the rightist forces to create a scare,''said Mr A.B. Bardhan, General Secretary, Communist Party of India (CPI).

He felt that the stock indices were "artificially" propped by NDA sympathisers. "The sensex had been artificially boosted up. The BJP was trying to create an impression that India is shining,'' Mr Bardhan said.

The CPI General Secretary said that his party understood the importance of the capital market. ``We realise the importance and usefulness of the stock market in present day economy but we also understand that there are certain forces who are creating the speculation and hype. We are not at all scared of this and appeal to all those who have any doubts that we are for stability and stable economic growth that helps the poor and not only a section of the rich.''

On disinvestment, he said that ``there is no reason for any scare."Mr Bardhan explained that the CPI was in favour of stable economic policies "that help the poor and not only a section of the rich.'' He said that the crash did not have any link with the economic fundamentals and that it showed the influence that foreign institutional investors (FIIs) had on the trading system.

CPI(M) leader, Mr Nilotpal Basu, said that there would be a comprehensive inquiry into the hammering down of stock prices. ``I am aware of the bear cartel hammering down prices. At this point the small investors should not lose heart as ups and downs are a regular feature of the stock market,'' he added.

He pointed out that the losses suffered by investors were only notional. ``The loss is notional and adjustments keep taking place. There is no direct link of the fall with the fundamental economic structure of the country. The market was behaving as if it was frustrated by the NDA's defeat,'' Mr Basu said.

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