Centre tries to soothe jittery investors

On a day of bloodbath on Dalal Street when the Sensex plunged more than 800 points, the government tried to soothe investors.

Economic Affairs Secretary Shaktikanta Das said India is prepared to deal with challenges emanating from the globe. “Over the last few days the NSE and BSE have experienced a lot of volatility. The decline in our markets is comparable to rest of the world... India is not an exception, but it is better off than many other markets,” he said.

The benchmark BSE Sensex on Thursday plunged over 148 points, while the NSE Nifty dipped below the 7,200-mark in early trade.

The 30-share index was trading down by 148.20 points or 0.62 per cent at 23,610.70 in the afternoon. It has lost 858 points in the previous three days. NSE Nifty dropped below the 7,200-mark by falling 29.50 points or 0.40 per cent to 7,186.20.

“The government is keeping a very close watch on international and global development and government is prepared to deal with all these challenges,” Das said.

Among global triggers responsible for the market showdown were Federal Reserve Chair Janet Yellen’s admission in a testimony to US Congress that weakness in the global economy and risks from China can weigh on the outlook for US growth.