Chidambaram advises investors not to sell in panic

New Delhi, Oct 23 : Finance Minister P. Chidambaram on Thursday advised investors not to indulge in panic sale of stocks.

Chidambaram's comment came after Sensex (the country's main stock index) plunged to its lowest since June 2006 amidst a gloomy economic outlook all over the world.

The Finance Minister also assured that there was adequate liquidity in the banking system and that banks should lend aggressively.

Benchmarks opened below psychological levels (10,000 for Sensex and 3000 for Nifty) following sharp declines overnight in US and Asian stocks, which tumbled to 5-year-lows, amid heightened worries over a global recession.

At 10:13 am, Bombay Stock Exchange's Sensex was at 9,811.77, down 358.13 points.

National Stock Exchange's Nifty was at 2965.55, down 99.60 points or 3.25 per cent.

The stock markets finished the day deep in red amidst volatile trading on concerns over global economic situation.

Sensex closed at 9772 down 398 points and Nifty closed at 2943 down 122 points.

Metal stocks were the worst hit followed by auto, realty and oil and gas. Among the frontlines Tata steel, Tata Motors, Hindalco, Ranbaxy and Mahindra and Mahindra took the brunt of selling.

Meanwhile, lower prices of food and non-food items pushed down inflation to 11.07 per cent for the week ended October 11, from 11.44 per cent a week ago.

ANI