Trying to soothe investors, the Finance Ministry on Friday underlined the strong fundamentals of the Indian economy and said the government is prepared to deal with all eventualities.
"We are well prepared. Markets are reacting spontaneously but will stabilise in a few days," said Economic Affairs Secretary Shaktikanta Das at a hurriedly called press briefing on Friday morning.
His comments came after markets made heavy losses in the wake of the UK referendum that saw a majority of people voting to leave the European Union.
Noting that currencies all over the world are reacting, Das said the Reserve Bank of India has foreign exchange reserves of $360 billion to tackle any volatility.