India's Growth and Fundamentals are Strong and Look More Attractive in a World Confronting Problems: FM
FINANCE Minister Pranab Mukherjee said that RBI is closely monitoring the current rupee situation and he is sure that RBI will do the needful, as required. The Finance Minister further said that he would like to add that despite global uncertainty, FII Investments have been in the positive territory in October (USD 634 million) and November as of yesterday (USD 213 million). The Finance Minister said that India's growth and fundamentals are strong and they look more attractive in a world confronting problems.
He was referring to the benchmark indices which lost 2.5 per cent (as of 2 P.M. yesterday) as overseas markets declined on concerns over US third quarter growth and high yields on Spanish bonds. He said that in India, a day ahead of the expiry of the November futures contract, trading remains choppy. Regarding the rupee, the Finance Minister said that the volatility in the Rupee is also keeping investors nervous, though today the rupee recovered from a low of 52.73 to trade at 52.12 per dollar.
He said that against an expectation of a more modest revision, the third quarter US GDP growth was revised downward to 2.0 per cent from the advance estimate of 2.5 per cent. As a result, the US markets closed lower by around 0.5 per cent yesterday. Asian stocks also fell in the range of 2 - 2.5 per cent, after a mining tax was approved in Australia's lower house of Parliament, along with lingering concerns on Europe.