Stocks crash due to FII sell off, says FM

He, however, said that India’s growth fundamentals were strong and they looked more attractive in a world confronting problems. Mukherjee’s comments came after the BSE Sensex declined 365 points on Wednesday.

“Markets have crashed because of continuous withdrawal of  FIIs. There is still uncertainty prevailing in the Eurozone. Rupee depreciation also has adverse impact. All these cumulative effects are there,” Mukherjee said.

He, however, said that despite global uncertainty, the foreign institutional investors have invested $634 million in October and $213 million till date in November. But, the rupee continued its downward streak between November 15 and 22, falling to a historic low of  52.73 on Tuesday.

Analysts say, the falling rupee, lack of government initiatives policy reforms and continued slow down in the US and Europe will continue to put pressure on stocks.