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13 October 2007

‘Speculators driving Sensex’

Finance minister P Chidambaram today attributed the recent surge in stock markets to speculators and hoped "things will cool down soon" — a prediction reflected in the plummeting Sensex.

"To some extent speculators are taking advantage of the rise in the Sensex... Things will cool down," he said on the sidelines of the Hindustan Times Leadership Summit here. The 30-share BSE index today fell by 395.03 points to 18,419.04, against the record high level of 18,814.07 reached in yesterday's trading.

Chidambaram, who had cautioned retail investors from entering the market when it crossed 18,000 points, said: "Sensex is an index of 30 stocks (and) as such it is a number.

We don't invest our future in Sensex." "Steep rise in Sensex sometimes surprises me, sometimes worries me. I do not think fundamentals change so rapidly day-to-day. Our assessment tells us Sensex is driven by copious inflow of funds," he said.

by erectusplus at 14:07:00 |