Governemnt's Advice to Investors
on Market Situation
Most of Asia opened the year 2008
on a weak note with heavy selling pressure seen in most
markets. Comparing the major Asian market indices as
on 2nd January, 2008 with their closing today, it is
seen that the Straits Times has fallen by 14.75%, Hang
Sang by 13.58% and the Nikkei is down by 9.29%. The
corresponding figure for BSE Sensex is 13.97%.
Today the BSE Sensex has fallen by
1408.35 points or 7.41% and the NSE Nifty has closed
down 496.5 points or 8.7%.
As regards domestic economic conditions,
the just released Review of the Economy 2007-08 by the
Economic Advisory Council of the Prime Minister has
estimated the rate of growth of the GDP in 2007-08 at
8.9%. Corporate profits as reflected in the third quarter
2007-08 results continue to be buoyant. Direct tax revenues
have shown an increase of 42.8% this financial year
(April to December, 2007). Banks have reported that
investments in the pipeline are robust and credit demand
is high.
Thus, the fundamentals in the domestic
economy are quite strong. Today’s market fall reflects
the continuing uncertainties in the global economy and
not any change in the fundamentals of the Indian economy.
Investors should take informed and responsible decisions
in the situation and not be led by market rumours or
any unwarranted apprehensions.
Source:
Press Information Bureau Date: January 21, 2008
