FM Arun Jaitley tries to save the day after the violent market crash, says it’s temporary

Finance Minister Arun Jaitley has said that the current stock market crash occurred due to global turbulence, saying it would not last long and would stabilize once the transient impact is over.

He said the government and RBI were closely watching the situation. "There has been for the last few days a great amount of turbulence which was being caused in the global markets. Obviously that turbulence has had impact on the Indian market itself.”

The finance minister said that not a single domestic factor in India has either contributed to it or added to it. “These are external factors. I have not the least doubt that this turbulence is transient and temporary in nature,” he said at an event in New Delhi.

Jaitley also underlined the need for strengthening the economy to deal with the impact of global developments.

The stock markets saw a bloodbath on Monday with the benchmark BSE Sensex crashing over 1,500 points, biggest in seven and a half years, amid a global rout.

The BSE 30-share index was trading 1,456 points down at 25,909, while the broader Nifty index of NSE was down 436 points at 7,863. Both the indices were down more than 5% in the afternoon trade.

The market witnessed all-round heavy selling across realty, power, oil & gas, bankex, auto, metal, capital goods and IT sectors.

(Image: Indiatimes)