By NNN-PTI
New Delhi : Finance Minister P Chidambaram Friday cautioned investors against high volatility in the stock markets, which extended gains for the ninth consecutive trading session Friday.
“My advice to investors is that they should do their homework. And if they cannot do their homework they should trust those (mutual funds) who do their home work. And for speculators, I have no advice,” Chidambaram said.
Stock market benchmark BSE Sensex Friday closed at its highest level of 17,291, up by 140 points in a day. The market has risen for nine days in a row, and the Sensex has added 1,787 points in its fastest-ever rally.
When asked whether the market movement was orderly, he said: “That is what SEBI is saying.” Chidambaram’s comments come a day after Corporate Affairs Minister P C Gupta warned investors, particularly the small ones.
“Investors have to take informed and not rumour-based decisions. It is our priority to ensure that small investors are protected,” Gupta had said.
Referring to the annual rate of inflation slipping to 3.23 per cent for the week ended Sept 15 from 3.32 per cent in the previous week, Chidambaram said: “You should be happy now.”
The minister Friday also met Reserve Bank governor Y V Reddy. The meeting lasted more than an hour. However, there was no official statement on what transpired in the meeting.
RBI is scheduled to announce its half-yearly monetary policy review on Oct 30, and is under pressure from bankers and industry to soften its stance on interest rate.