COVID-19 impact on Business: Indian markets faring better than others, economic fundamentals strong, says CEA Subramanian
The current developments in stock market are related to global factors and do not reflect strong fundamentals of the Indian economy, Chief Economic Adviser K V Subramanian said on Friday.
New Delhi: The current developments in stock market are related to global factors and do not reflect strong fundamentals of the Indian economy, Chief Economic Adviser K V Subramanian said on Friday.
The market has been moving in tandem with other global markets owing to concerns relating to coronavirus pandemic, resultant fears of economic slowdown and recent fall in crude oil prices, he said.
"All countries, including France, Russia, US, UK, Japan and others have had more than 20 per cent decline in their stock prices. But the fall in Indian stock market is below the global average," said Subramanian.
He added that the retail inflation in February slowed to 6.58 per cent over the previous month mainly due to easing food prices. By July, it is expected to come down to 4 per cent.
Meanwhile, India's industrial output grew by 2 per cent in January. "We have half a trillion dollars of foreign exchange reserves," said Subramanian. "The current account deficit is expected to be significantly lower due to low crude oil prices."
Subramanian's comments came after the BSE Sensex and NSE Nifty turned green after hitting a 10 per cent lower circuit in early trading.
Asian stock markets too crashed on Friday with coronavirus panic selling hitting almost every asset class and pulling down Japan's Nikkei as far as 10 per cent.(ANI)