By IANS
New Delhi : Ascribing the steep fall in Indian share market indices to a “correction”, Prime Minister Manmohan Singh Monday said the value of shares in India will continue to grow as fundamentals of the economy remained strong.
“I am confident the markets will grow in an orderly fashion,” the prime minister told reporters here, while addressing a joint press conference with his British counterpart Gordon Brown.
“From time to time, some corrections are part of market process. I am sure and confident we will sustain orderly growth,” the prime minister added.
The remarks came in the wake of the 30-share sensitive index (Sensex) of the Bombay Stock Exchange (BSE) registering its steepest intra-day fall Monday, losing over 2,000 points, as sentiments were down over fears of recession in the US.
As trading came to a close, the Sensex made a marginal recovery, but was still down 1,408.35 points, or 7.41 percent, in what was the steepest closing fall since May 2004.
Earlier, the finance ministry also advised caution on the part of investors and said the fundamentals of the Indian economy were strong and that the steep fall in Indian indices was lower that those in other Asian economies.
“Today’s market fall reflects the continuing uncertainties in the global economy and not any change in the fundamentals of Indian economy,” said the statement, issued after the markets closed Monday.
“Investors should take informed and responsible decisions in the situation and not be led by market rumours or any unwarranted apprehensions.”