August 5, 2011 6:18 PM

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Stock market crashes due to external factor: FM

Finance Minister Pranab Mukherjee says, the stock market crash is due to factors like poor US economic recovery and Euro Zone debt crisis. Talking to reporters in New Delhi Mukherjee said it has nothing to do with domestic situation and the current volatility is temporary. He expressed the hope that it will recover shortly.Reacting to the crash, Reserve Bank of India Deputy Governor K C Chakrabarty said, the market situation is becoming more complex and volatile by the day. He said the people have to learn to live with it. The sharp plunge on Indian bourses followed an overnight meltdown in the US market amid concerns that the American economy might slip into recession. The benchmark Sensex had crashed by over 700 points in the morning to slip below 17,000-point level for the first time since May last year but recovered later to close at 17306.

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