Unfazed by the three day slump in stock markets on fears of drought, Finance Minister Arun Jaitley today said the slide does not indicate a trend as economy is on a recovery path.
He also said there is “no basis” to suggest that India was out of favour as far as foreign investors are concerned.
The BSE 30-stock index, Sensex, has lost 1,035.57 points in the past three sessions.
“A day or two reaction in the market itself never indicates a trend… I don’t read too much on daily movements as far as markets are concerned,” he told reporters here.
He was responding to questions on plunge in the stock market following IMD’s predictions that monsoon rainfall in the current year would be 88 per cent of the long term average and the Reserve Bank’s grim view on economy.
When asked if India was going out of favour with foreign investors, he said “I don’t think so because there is no basis of record to justify that”.
Jaitley stressed that by and large with the health of economy recovering, “I see much greater stability as far as markets are concerned”.
The Finance Minister, who has set an ambitious target to garner Rs 69,500 crore for disinvestment this fiscal, also said the government’s stake sale programme will “continue as it has been planned”.
The Sensex fell for the third straight today on RBI’s cautious stance on economic recovery and concerns on deficient monsoon.