Asserting that Monday's sharp fall in share prices do no reflect any change in the fundamentals of the Indian economy, the government has advised investors not to be led by market rumours or any unwarranted apprehensions.
". . . thus, the fundamentals in the domestic economy are quite strong... Today's market fall reflects the continuing uncertainties in the global economy and not any change in the fundamentals of the Indian economy," the finance ministry said in a statement after markets recorded its biggest fall on Monday.
The government advised investors to take informed and responsible decisions and not to act on the basis of market rumours or any unwarranted apprehensions.
The BSE Sensex fell by 1408.35 points or 7.41 per cent, while the NSE Nifty closed down 496.5 points or 8.7 per cent.
The government pointed out that most Asian markets opened the year 2008 on a weak note with participants indulging in heavy selling.
Sensex fell by 13.97 per cent this month, the statement said. Singapore's Strait Times declined by 14.75 per cent, Hong Kong's Hang Sang by 13.58 per cent and Japan's Nikkei by 9.29 per cent.
To substantiate the point that fundamentals of the economy are strong, it said banks have reported robust investment pipeline and high credit demand.
The finance ministry pointed out that a report titled Review of the Economy 2007-08, released by the Economic Advisory Council of the Prime Minister, has estimated the rate of growth of the GDP in 2007-08 at 8.9 per cent.
Corporate profits as reflected in the third quarter results continue to be buoyant, the statement said, adding that direct tax revenues have shown an increase of 42.8 per cent up to December 31 this fiscal.
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