Chidambaram’s comments spook markets
The bourses snapped a three-day rally to end the week in the red after Finance Minister cast apprehensions over the steep rise in stock prices, reports Vyas Mohan.business Updated: Oct 12, 2007 22:01 IST
The bourses snapped a three-day rally to end the week in the red after Finance Minister P Chidambaram cast apprehensions over the steep rise in stock prices.
Recovering from an early slide with Congress President Sonia Gandhi reiterating the stability of the United Progressive Alliance government, the markets dropped later in the day after Chidambaram said he was surprised by the kind of rise of the Sensex.
While the Sensex fell by 2.1 per cent to end the day at 18,419, 395 points below its all-time closing high of 18,814 on Thursday, the 50-share Nifty of the National Stock Exchange ended the day at 5,428.25 points, down by 1.75 per cent.
“The steep rise in the Sensex sometimes surprises me, sometimes worries me. I do not think fundamentals of the economy change day to day. The Sensex is driven by the inflow of funds,” he said while speaking at the Hindustan Times Leadership Summit in New Delhi on Friday.