Finance Minister P Chidambaram today promised more measures to infuse liquidity and advised investors not to act in haste or panic, a statement he made minutes before the market opened up by 495 points breaking a five-day streak of fall.
"Our banks are ready and willing to provide credit. Suitable advisories are being issued to the banks. We will respond swiftly according to the needs of the situation.
"We are working on measures that will infuse liquidity, make credit intermediation smoother and increase the confidence of depositors and investors. We hope to be able to announce them shortly," he said.
After the week-end mayhem in which the market tanked 800 points, Chidambaram went live on television channels expecting the stock market to take its cue from the "positive developments" of the Australian market and three of the East Asian capital markets opening on a 'bright note' this morning.
"We must remain confident and respond to the situation in a cool and mature manner. We must banish fear. Especially depositors have nothing to fear because their deposits in banks are safe.
"Investors must take informed decisions. Before you sell, you must remember that for every seller there is a buyer. You must ask yourself why the buyer is buying in these times of perceived uncertainty and, therefore, ask yourself the further question whether there is a need to act in haste or in panic. In my view, there is no reason at all to act in haste or to give room for panic," he said.
Mentioning that already Rs 60,000 crore liquidity has been infused into the financial system by RBI's measures and that Rs 91,500 crore liquidity adjustment facility exists, Chidambaram said the government, RBI and SEBI were watching the situation carefully and coordinating their actions.
