RBI governor has exuded confidence in the Indian growth potential
Reserve Bank of India governor Raghuram Rajan poses for a group photograph with ISB students and staff in Hyderabad on Thursday. - DC
MUMBAI/Hyderabad: The Indian equity markets plunged by over one per cent on Thursday after a sharp sell-off in global equity markets, even as RBI governor Raghuram Rajan exuded confidence in the Indian growth potential.Though the Indian markets tried to maintain their positive momentum after opening the day on a flat note, a sharp fall in European equities by noon, triggered a major sell-off across sectors.
The Sensex fell below its psychological 26,000- level mark and closed the day at 25,999.34, down 349.99 points or 1.33 per cent. The Nifty ended the day at 7,748.20, down 115.80 points or 1.47 per cent. Market experts attributed the fall to heavy selling by foreign portfolio investors for reasons, which include the end of US Federal Reserve’s stimulus at its October 29 meeting.
Dr Rajan, however, remains confident of the Indian growth potential. “India will witness spillover effect of global volatility. After the initial round of panic, investors will get attracted to markets whose fundamentals are good. So India needs to build credibility in financial markets, so that it could attract investors. Where else can they find investment opportunities like in India,” said Dr Rajan while interacting with ISB students in Hyder-abad on Wednesday.
The meltdown on Thursday is attributed to the exit of foreign investors. According to the provisional data released by the stock exchanges, foreign inve-stors offloaded shares worth Rs1,128.37 crore. Theyhave been sellers for over a week.
( Source : dc correspondent )
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