Finance Minister P Chidambaram advised investors in equity markets to take informed decisions and not to act in panic.
"There is no reason for Indian market to go down just because the eastern markets are down...Nobody should sell in panic," he told reporters here.
On the fall in rupee value, he said, capital is going out of the country because there are redemption pressure on FIIs back home.
Once these pressure eases, money will flow into the country in the form of ECB, FCNR, NRE.
"I am sure once pressure on FIIs ease, FIIs will also bring in money to invest in corporate and government debt market," the minister said.