The Hindu Business Line : Chidambaram comes under Opposition fire

While the stock markets witnessed mayhem through out the day, temperatures on the political front also soared during the day with the Opposition party BJP demanding the resignation of Finance Minister, Mr P. Chidambaram, because of the largest-ever stock market crash over the past three trading sessions.

The Telegu Desam and the AIADMK, too, joined the fray and asked for the Finance Minister's resignation.

Not to be left behind, the Left allies of the UPA Government also came down heavily holding the Government responsible for the stock market crash, despite prior warnings that the high index was a bubble that was bound to burst and that small investors have burnt their fingers.

In the Rajya Sabha, former Finance Minister and BJP leader Mr Yashwant Sinha demanded the resignation of Mr Chidambaram, and said, "The country's stock markets have never witnessed such volatility as being seen over the past week."

"It appears that the Government and SEBI have lost all control and the market is in the hands of manipulators," he said.

The Finance Minister who was present in the House responded quickly stating that any "off the cuff" statement could have "damaging implications for the market."

The Finance Minister also said that retail investors need not worry over the slide in the stock market as the economic fundamentals of the country were strong.

"Ordinary investors need not worry as fundamentals of the economy are strong. Our foreign exchange reserves stand at $163 billion and inflation is at 4 per cent," he told the Rajya Sabha.

The CPI(M) was critical about the Government's role. "We have been warning the Government of the artificial rise in the stock market. The crash is only corroborating what we have been saying. It's a bubble that was bound to burst. The small investors have burnt their fingers," CPI(M) leader Mr Rupchand Pal told newspersons. The unprecedented stock market plunge has also prompted the Trinamool Congress leader, Ms Mamata Bannerjee, to seek the Government's response in the Lok Sabha and a detailed discussion on the issue.

Ms Bannerjee was supported by Mr Harin Pathak, BJP, who said the stock market crash for the third consecutive day had even led to some of the affected investors committing suicide.

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