No cause for worry, says finmin on rising foreign money inflow
The Finance Ministry said the surge in foreign capital inflow in the country, powered by initial recovery in the global economy, is not a cause for concern at present and no specific action is required to arrest it.business Updated: Nov 11, 2009 15:00 IST
The Finance Ministry on Wednesday said the surge in foreign capital inflow in the country, powered by initial recovery in the global economy, is not a cause for concern at present and no specific action is required to arrest it.
FIIs inflow into securities markets have turned positive after being hit by the global meltdown. FIIs net bought stocks worth worth about Rs 75,000 crore this fiscal so far, after taking out around Rs 37,520 crore from Indian stock markets a year ago.
"As of now, it is not a cause for concern... We don't see any need for any specific action in this regard," Finance Secretary Ashok Chawla told reporters.
He said the Government as well as the SEBI and RBI are monitoring the situation closely. "We are watching the situation while the Reserve Bank and SEBI are seeing what is happening in terms of inflows and equity markets," Chawla said.
Chawla's comments came amidst growing call for action by exporters as an appreciating rupee has hit their competitiveness at a time time when they are battered by slackening demand overseas due to the global meltdown. Increase in foreign money inflow has led to rupee appreciating 8.24 per cent against the dollar this fiscal to date.