Global economic turmoil hitting Indian markets, says government

Says they know the challenges and are taking necessary measures

The Indian stock markets fall is linked to turmoil in the global economy and measures are being taken to deal with the situation, the government said on Wednesday.

"Global economy is in turmoil, markets are down. We know the challenges and are taking necessary measures," Economic Affairs Secretary Shaktikanta Das said in a tweet.

Disappointing earning results, coupled with negative global cues and a slump in crude oil prices, dragged the Indian equity markets to their lowest levels in 2016 on Wednesday.

The S&P BSE Sensex, which opened at 23,938.32 points, provisionally closed at 23,758.90 points (3.30 pm) -- down 262.08 points or 1.09 per cent from the previous day's close at 24,020.98 points.

 

"The lower closing of Japanese markets, crude oil slump and disappointing results have all contributed to this panic selling," Anand James, co-head, technical research desk with Geojit BNP Paribas Financial Services, told IANS.

Selling frenzy led to both the bellwether indices of the Indian equity markets to trade at levels, last seen during May 2014.

The indices even touched their new 52-week low during the intra-day trade.