FM warns small investors of market volatility

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New Delhi, Sep 28 (UNI) Finance Minister P Chidambaram today issued a note of caution to investors against high volatility in the stock markets, saying that they should do their homework before putting their money in equities and taking recourse to the mutual funds.

"My advice to investors is that they should do their homework. And if they cannot do their homework they should trust those (mutual funds) who do their home work. And for speculators, I have no advice," the minister told reporters here.

The bourses have regsitered a sharp upswing with the BSE Sensex on a roller coaster ride. The BSE Sensex today closed at its highest level of 17,291, up by 140 points in a day.

On a question as to whether the market movement was orderly, Mr Chidambaram said this was the impression of SEBI.

Referring to the inflation rate dipping to 3.23 per cent for the week ended September 15, Mr Chidambaram said: "You should be happy now." Earlier, he met Reserve Bank Governor Y V Reddy for an hour, but they refused to comment on it.

UNI

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