The Indian Government has said that volatility is part and parcel of capital markets and the players will have to adjust themselves to the emerging situation, media reported.
Commenting on the issue, Minister of State for Finance Jayant Sinha told the media, "It is external factors which are causing volatility and turbulence which you have seen across these asset markets. This will take time to play out, volatility is part and parcel of operating in these capital markets."
"The market players will have to work with the external factors whether it is the Chinese economy or a possible Fed rate hike or deflationary forces. All of this are playing themselves out in the capital markets and asset prices will adjust themselves as this things play out," he added.
The Minister further added that all central bankers whether it was the RBI or the Fed were taking into account what was happening in other markets as well and all of that would be factored into by the RBI as well as Fed and other central banks.