Finance Minister P. Chidambaram said on Friday that the sharp falls in domestic markets that sent the Indian rupee to a record low were a reaction to global developments and he expected calm to return.
Chidambaram, speaking to reporters, also said the fundamentals of the Indian economy had not changed and asked investors to wait for the April-June quarter growth numbers due at the end of the month.
"We have taken a number of measures," Chidambaram said.
"Let us wait for what the first quarter growth numbers are."
Chidambaram spoke on a day which saw the rupee plunge to a record low of 62.03 to the dollar and stocks sliding to their biggest single day fall in two years.
Indian markets need not be so sensitive to US data: Chidambaram
(PTI) Attributing the 4 per cent plunge of the BSE Sensex to global factors, Finance Minister P. Chidambaram today said the market should not be "so sensitive" to data flowing from the US but reflect Indian conditions.
"I have no doubt in mind, when calm is restored in the market, people will begin to understand Indian market indicators must basically reflect Indian market conditions. They should not be so sensitive to data coming out of the US," he said on sidelines of an event here.
The BSE 30-stock index, Sensex, fell nearly 770 points or 4 per cent and the rupee breached the 62 level against the US dollar on concerns among large investors of capital curbs. The gold prices too shot up by Rs 1,310 per 10 gram to Rs 31,010.
Worried over the developments, Chidambaram said: "I think this is time for calm; this is time for reflection and let's see what happens next week."
Observing that nothing has happened in the Indian economy between Wednesday and Friday morning, the minister said, "nevertheless the markets have taken a hit and that is reflected in the rupee also. We have taken a number of measures...a number of measures are being taken. Let's wait to see what the first quarter growth rates are."
Chidambaram said markets all over the world have taken a hit in reaction to job reduction data that came out of the US.