No need for exaggerated panic in Indian market: Arun Jaitley

Union finance minister Arun Jaitley has said there's no need for the Indian market to panic as a reaction to the stock market crash. He said the government will continue to pursue policies to support growth amid global slowdown.

In a video released by the finance ministry on Twitter on February 12, he attributed the recent crash to global factors and said there was no need for "exaggerated panic". The investors should keep the economy's inherent strength in mind while investing, he said.

The benchmark BSE Sensex, which crashed by massive 807.7 points on February 11 on global cues, was trading up around 100 points in the pre-close session on February 12.

"... it would be a part of prudent investment reaction that the inherent strengthen of Indian economy is kept in mind by investors rather than react disproportionately to what the global developments are," Jaitley said.

"There could be several reasons, which are predominantly outside the country, the uncertainty in the Fed rate or what's happening in Europe or the slowdown anticipated in China. Now, these global factors will remain and will have to be tackled globally by those economies.

"... there need not be any exaggerated panic in India for the reason that India as an economy even in the midst of global slowdown has clearly stood out to maintain a 7.5 per cent plus growth rate," Jaitley said, adding that the services and manufacturing sectors are likely to recover.

FM Shri. @arunjaitley 's statement on Market situation .Watch the videohttps://t.co/p5nSitL5U6

— Ministry of Finance (@FinMinIndia) February 12, 2016