India has fortress like balance sheet: Jayant Sinha

As stock market tanked today, government sought to assure investors that India has a "fortress" like balance sheet and is well prepared to deal with the impact of global economic turbulence.

Minister of State for Finance Jayant Sinha also asked investors to take a long term view on equities, without getting swayed by short term volatilities, saying that he himself has been investing in stocks for 30 years.

"India is doing very well, we have a resilient economy. Economic fundamentals are rock solid, we have a fortress balance sheet. As a country we are very well prepared for any volatility or any turbulence in the global economy," he said.

Talking to reporters on the sidelines of a ICAI event here, Sinha said that bouts of volatility plague stock markets every few years and sometimes every year as globally investors readjust their portfolios.

"I have been investing in this market for 30 years... Obviously there will be times in the capital markets when capitals will flow in and out as it is happening around the world. During that time our investors should think long term, they should recognise the underlying attractive and fundamentals and adjust their investment strategies," he said.

Sinha said the long term trend in equity markets around the world has been positive and upwards.

"All investors should take a long term view, they should hold on while the market goes through its gyrations and they should maintain sound investment strategies and be prepared for this volatility... Investors should think long term, they should recognise strength and fundamentals of Indian economy," he said.

The stock market has fallen in four consecutive trading sessions. The BSE Sensex today plunged 807 points to settle at 22,951.83-- its biggest fall in six months.

The Sensex has come off over 23 per cent from its all-time peak of 30,024 recorded nearly a year ago on March 4 while the total investors' wealth has come down by close to Rs 20 lakh crore since then.

Sinha said people are looking at India as a beacon of hope and haven of stability amid turbulence in global economy.

"Every few years in the global economy, some sudden shock creates tremendous turbulence and that reduces the prospects of growth going forward. In these turbulent times, India as a haven of stability, India as a beacon of growth and India, as a moral for the world in terms of democratic country where we are working together to improve life of citizens, becomes shining example," he added.

(Image credits: BCCL)