Attributing the turmoil in stock and currency markets to global developments, Economic Affairs Secretary Shaktikanta Das said the rupee had not declined as steep as currencies of some other countries of the world.
Trying to calm jittery investors, Economic Affairs Secretary Shaktikanta Das on Thursday said the decline in stock markets in India is not as bad as in some other countries and the government is prepared to deal with challenges emanating from global developments.
Attributing the turmoil in stock and currency markets to global developments, he said the rupee had not declined as steep as currencies of some other countries of the world.
“Over the last few days the NSE and BSE have experienced a lot of volatility. The decline in our markets is comparable to rest of the world… India is not an exception, but it is better off than many other markets,” he said.
The benchmark BSE Sensex on Thursday plunged over 148 points while the NSE Nifty dipped below the 7,200-mark in early trade today on sustained selling by funds and retail investors amid weak Asian cues.
The 30-share index was trading down by 148.20 points or 0.62 per cent at 23,610.70 in the afternoon. It has lost 858 points in the previous three days. Similarly, the NSE Nifty dropped below 7,200 mark by falling 29.50 points or 0.40 per cent to 7,186.20.
Das said that since January, Nifty and BSE have witnessed about 10 per cent negative growth “but if you compare with other markets — Japan lost 21 per cent, S&P 500 of US 10.35 per cent, Hong Kong 14 per cent, Singapore 12 per cent, UK 10 per cent and Shanghai 28 per cent.”
He added that amid the global turmoil, 7.6 per cent growth rate for the current fiscal, as projected by the Central Statistics Office (CSO), was not bad although the agriculture sector would continue to remain a challenge.
“The government is keeping a very close watch on international and global development and government is prepared to deal with all these challenges,” he said.