Chidambaram describes stock crash as technical correction
New Delhi, May 16 (UNI) Finance Minister P Chidambaram today described yesterday's crash in the stock market as a "correction" triggered by a sharp drop in global commodity prices and the US fund rates revision.
The benchmark Sensex recovered after falling again in early trade. ''It is a correction provoked by reasons which are quite understandable,'' the Finance Minister told reporters.
He said all metal prices are down.'' There is some impact of increase in local cement prices, and the Fed rate decision. All the markets are doing the same." The Sensex fell 3.8 per cent to 11,822.20 points yesterday hitting its lowest close in three weeks and registering the sharpest decline since May 17, 2004, when the index tanked by more than 11 per cent.
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