The Hindu Business Line : Just a correction, says Chidambaram

Terming the steep fall in the local stock market indices over the past few sessions as a "correction", the Finance Minister, Mr P Chidambaram, on Tuesday said that this trend primarily reflected the effect of global factors such as declining metal prices and increase in US interest rates.

`It's understandable'

"I will put it as a correction provoked by reasons which are quite understandable. Metal prices are going down. There is also some impact of US Fed rate hike. All markets are doing the same and there is nothing to worry," Mr Chidambaram told reporters here.

The US Federal Reserve had recently increased its Federal funds rate to five per cent and also indicated further increases in the future.

This move raised concerns that capital flows would move away from emerging markets such as India.

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