Quoting the decline in the stock markets to global factor, Finance Minister Pranab Mukherjee said India’s growth and fundamentals are strong and they look more attractive in world, which is confronting problems, adding that the FII investments have been in the positive territory in October and November.
Mukherjee’s comment comes in the backdrop of sharp fall seen in the Indian stock market. The uninterrupted withdrawal of funds by foreign investors on the back of uncertainties in Euro-zone and depreciation of rupee, the Bombay Stock Exchange (BSE) benchmark Sensex, crashed by 587 points in intra-day trade before recovering to close 365 point lower at 15,699.7.
'Markets have crashed because of continuous withdrawal of (funds by) FIIs. There is still uncertainty prevailing in the Euro-zone. Rupee depreciation also has adverse impact. All these cumulative effects are there,' Mukherjee said.
In the last six trading sessions, the Foreign Institutional Investors (FIIs) have withdrawn $623 million from equity markets. In October and till November 22, the FIIs have invested $634 million and $214 million respectively. But the FIIs today pulled out over $160 million from stock markets.
On the depreciation of rupee, finance minister said that the RBI is closely monitoring the situation and will do the needful as required. On November 22, the rupee has touched its all time lowest level against American dollar however, recovered on November 23, to trade around 52.12 per dollar.
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