The Hindu Business Line : Stock market

This is with reference to the editorial "Panic unwarranted" (Business Line, September 2). As rightly pointed out in the editorial, the panic which appears to have affected the stock market in recent days is unnecessary and unwarranted.

Though the Annual Report of the Reserve Bank of India has stressed the need to curb the rising inflation, one must not read too much into the statement.

The Reserve Bank of India, as the country's apex bank, may only be voicing its concern since it may be required to step in with corrective measures if the inflation rate rises any further.

However, if one were to look at the health of the economy and the performance of the UPA Government, one would realise that the country is moving in the right direction.

Also, considering the rise steep rise in global crude price that took place after the UPA Government came to power, one can say that the new Government has done a fairly good job of managing the economy.

Investors should view the money the money they put into the stock market as a long-term investment, rather than a short term one.

They should also stop speculating too much, as it could prove to be counter-productive.

J. Kathikeyan

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