New Delhi, Jan 22: Reacting to the sharp fall of the stock markets for the second consecutive day, Finance Minister P Chidambaram today adviced the investing community to maintain calm as the fundamentals of the economy were sound.
''We had anticipated the market to open on a downward trend and hit the circuit breaker. My advice to investors is to stay calm,'' Mr Chidambaram told reporters. The trading on stock market, which had yesterday witnessed its biggest single-day fall of 1,408 points on concerns related to the US economy going into recession, was halted after the Bombay Stock Exchange (BSE) benchmark Sensex tumbled by 2,029 points, crossing the circuit limit of 10 per cent, to 15,576.30 within few minutes of trading.
Affirming to the fact of strong fundamentals, Mr Chidambaram said the economy is poised to grow at nine per cent. He said according to the chairman of the Economic Advisory Council Dr C Rangarajan, the economy is slated to grow at 8.5 per cent in the next fiscal.
''The economy will grow this year at close to 9.0 percent and even according to Dr. Rangarajan's committee report it will grow 8.5 percent next year,'' he added.
Finance Minister P Chidambaram today said the current slump in the Sensex of the Bombay Stock Exchange (BSE) would "not effect" the market in the long run.