Mumbai: Finance Minister P Chidambaram’s statement that the Rs 60,000-crore loan waiver to farmers needn’t worry business has not impressed markets.
Markets fell by almost a thousand points on Monday—the second largest single day fall ever since January 21.
Investors made heavy sales in major stocks like HDFC, Bharat Heavy Electricals, State Bank of India and Reliance Capital Ltd.
At 1530 hrs IST, the Bombay Stock Exchange (BSE), which had opened at 17,227.56 points, tumbled to a low of 16,651.85 points. It lost 926.87 points or 5.27 percent.
The BSE Midcap index, which opened at 7,622.76 points, went down by 289.68 points to a low of 7,379.96 or by 3.77 percent.
The BSE Smallcap index, which opened at 9,591.22 points, went down by 364.66 at 9,263.47 points or 3.79 percent.
On BSE, the market breadth was extremely negative with low trading volumes. A total of 374 shares advanced, 2,325 shares declined and 37 shares remained unchanged.
Chidambaram, while speaking at a meeting of chambers of commerce in Delhi, had said the fall in Indian stock markets reflected what was happening globally and there was not much cause for worry as India's growth stock was intact.
"The Asian markets have slipped today (Monday) because of the fears of a recession in the US. And what is happening in India only shows that we are not as decoupled as we may think we are," he said.
"I don't think we need to worry too much about that. This is reflecting what is happening in the world market," he said, after the BSE opened with a loss of 360 points.
Responding to the issues raised by the corporate sector, he said: "I have not forgotten the corporate sector. Despite the advice given by my Chief Economic Advisor and suggestion from Economic Survey, we accepted your (corporates) demand of retaining peak Customs Duty rate.”
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