In wake of recent rout in Indian equities and falling rupee, the ASSOCHAM Economic Affairs Council held emergency deliberations on Monday to review the serious situation unfolding in the global financial markets and their impact on the Indian economy.
Indian equities witnessed one of the worst trade on Monday as worries of slowdown in China — global economic growth engine — roiled investors from Singapore to New York. In the hefty sell-off Sensex tumbled over 1,700 points intraday on Monday, the biggest slump in over seven years and third-largest in the benchmark's history, amidst global routs.
"It impressed upon the Finance Ministry, the Reserve Bank of India and the market regulator SEBI to keep a minute to minute eye on the fast deteriorating situation in the world markets, essentially emanating from the Chinese economy. Even though the Indian market has fallen by about four per cent as compared to 8-9 per cent in China, it is not a comforting situation," reads an statement issued by the apex industry body.
"Similar is the case with regard to fast depreciating rupee. 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", the ASSOCHAM Economic Affairs Council said after brain-storming deliberations.