Today the BSE Sensex has fallen by 1408.35 points or 7.41% and the NSE Nifty has closed down 496.5 points or 8.7%.
As regards domestic economic conditions, the just released Review of the Economy 2007-08 by the Economic Advisory Council of the Prime Minister has estimated the rate of growth of the GDP in 2007-08 at 8.9%. Corporate profits as reflected in the third quarter 2007-08 results continue to be buoyant. Direct tax revenues have shown an increase of 42.8% this financial year (April to December, 2007). Banks have reported that investments in the pipeline are robust and credit demand is high.
Thus, the fundamentals in the domestic economy are quite strong. Today’s market fall reflects the continuing uncertainties in the global economy and not any change in the fundamentals of the Indian economy. Investors should take informed and responsible decisions in the situation and not be led by market rumours or any unwarranted apprehensions.
BSC/SS/GN-16/08
7959
