India Inc seeks corrective steps

Says market crash will adversely impact investors' sentiments

New Delhi: As the BSE Sensex nosedived 1,624.51 points, India Inc on Monday said the policymakers in the country must ensure corrective measures at the earliest to rebuild investor confidence, both domestic and overseas, jolted by the biggest-ever plunge in the Indian markets.

The benchmark Sensex tanked 1,624.51 points to close at one-year low of 25,741.56 as stock markets globally went into a tailspin amid mounting worries over the impact of China's slowing economy.

"The fall in Sensex affects confidence for investments. Anyway there have not been much investments in the last few months. You have to rebuild confidence of investors in the market," CII President Sumit Mazumder said.

Assocham Secretary General D S Rawat maintained that the crash would have severe repercussions on the sentiments of investors, both domestic as well as overseas. "Corrective measures will have to be taken at the earliest by the RBI and government," he added.

CII Past President Ajay Shriram termed the crash as a "reflection of global situation". On the rupee fall, he added that "exports are impacted already due to downturn in the global market. The rupee falling will benefit Indian exports. However, the imports will be affected badly".

Meanwhile, Rawat said steps will have to be taken to "save India's economy from dumping of goods by countries with whom we can signed free trade agreements". Expressing confidence in the government's role, CII's Mazumder said, "I do believe there will be steps taken... and there will be a correction in the market. I see this as a temporary phase."

Blaming global factors Assocham said, "But for depleting crude oil prices, things would have been difficult for the Indian economy. The global factors are again going to play a key role and it is testing time for our financial institutions."