As Indian equity markets suffered their biggest-ever single-day drop in absolute terms, India Inc said the volatility is short-lived and the markets are expected to stabilise as the country's economy rests on strong fundamentals.
Assocham Secretary General Deepak Sood said the panic in the financial markets due to a huge fall in the crude oil prices does not affect India's macroeconomic picture and on the contrary, low fuel prices would help the country. He also said India being a large importer of crude oil, fall in prices would be a positive for the Indian economy though there is a global sentimental downside. He pointed out that going forward, low prices of crude can be a demand driver for India, from the automobile industry to consumption as inflation would be tamed. He added that lower inflation would also help further in cutting the interest rates.
PHD Chamber of Commerce and Industry President D K Aggarwal said the volatility in the rupee and stock markets is short-lived and primarily driven by the spread of Coronavirus disease (COVID) in many countries. He also said that the markets are expected to stabilise, as the fundamentals of the Indian economy are strong enough to withstand the external shocks on the back of robust economic reforms undertaken by the government during the last many years.