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The Finance Minister, Mr Pranab Mukherjee, has sought to calm the nerves of the stock markets, stating that Friday's sharp fall was due to external factors and not on account of domestic issues.
“Major reason is — this is nothing domestic, it is substantially external. There are two main external reasons — sovereign debt burden of some of the Euro zone countries spreading to other parts of Europe and weak recovery in the United States,” Mr Mukherjee told reporters here.
The Finance Minister also expressed hope that the global shocks would soon be absorbed and Indian markets would stabilise.
“This (sell-off) is mainly because of the fact that some projections has been made about poor recovery of US. This has affected the market sentiment. The current volatility is temporary. Hope that there will be recovery shortly,” Mr Mukherjee said.
He pointed out that Asian stocks were tumbling in light of the sharp sell-off in world markets due to poor economic indicators in US and fears of sovereign debt default contagion in Euro zone spreading to other European countries.
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