FM credits govt steps for buoyancy on Dalal Street

Finance Minister P Chidambaram, on Tuesday, dismissed suggestions that bulls are on the rampage on Dalal Street on the hope of a stable government post General Election, saying it is the “fact” of a stable government provided by UPA has led the rally in the market and not any “hope”.

The BSE Sensex hit its second consecutive record high in as many sessions before ending flat at the end of the day on Tuesday but the rupee rose to its highest level in nearly eight months.

Traders expected the rupee to continue trading with an upward bias while market men said the biggest near-term catalyst for the Indian market is the upcoming general election and the current rally was seen as the one fuelled by hope of a stable government.

Chidambaram, however, said he was amused to read the analysis in certain sections of media that a hope was fuelling the rally.

“I am amused to read in some sections of the media that it is the 'hope' of a stable government that is bringing in investments and driving up the capital market and the value of the Rupee. It is not 'hope', but the 'fact' of a stable government provided by the UPA and the numerous measures taken in the last 18 months that have provided stability and strength to the Indian economy,” the minister said in a statement from Sivaganga, where he is campaigning for Lok Sabha elections in support of his son Karti Chidambaram.

The minister said if there was any hope that was driving the market, it was that the new government would follow the ten-point agenda that he had spelt out in my Interim Budget speech on February 17, 2004.

“I can assure the people and the investors that a Congress-led government will faithfully implement the ten-point agenda,” Chidambaram said.

Foreign funds bought shares worth $240 million on Monday, taking their total purchases in 2014 to $2.6 billion. Foreign inflows into the debt market stand at a net $5.9 billion so far this year.

The broader Nifty rose 0.1 per cent, or 6.25 points, to 6,589.75, while the benchmark BSE Sensex ended flat at 22,055.21 on Tuesday.