ID :
121347
Tue, 05/11/2010 - 07:44
Auther :
Shortlink :
https://www.oananews.org//node/121347
The shortlink copeid
India safe haven, immune to Greek crisis: Chawla
New Delhi, May 10 (PTI) Emboldened by India overcoming
the global financial crisis faster than many others, Finance
Secretary of India Ashok Chawla on Monday allayed fears of
Greece debt crisis impacting the Indian economy.
"I think we are immune. We were immune when there was a
much larger international financial crisis," a visibly
confident Finance Secretary Ashok Chawla told reporters on the
sidelines of an Assocham function.
The European Union and the International Monetary Fund
(IMF) on Monday unveiled a mammoth nearly USD one trillion
(euro 750 billion) bailout package for troubled Eurozone
countries.
As far as India is concerned, the impact will be
minimal. In the short run, it might help India in terms of
India being regarded as a relatively more safe haven," Chawla
said.
"Capital flows are determined by various factors, one of
them quite clearly, evidently is the safer the destination,
more the money goes there," he added.
Meanwhile, the benchmark Sensex on the Bombay Stock
Exchange on Monday soared by 561 points, the biggest
single-day gain in nearly 10 months, on Strong buying support
from foreign institutional investors.
Since the start of 2010, the time around which fears of
sovereign debt crisis in Europe began to appear, there was a
net inflow of foreign institutional funds into the Indian
capital markets till April-end, which was Rs 54,606 crore.
However, in the first week of May, the FIIs turned net
sellers in the market on fears of Greek crisis deepening and
spreading to other nations in the Eurozone. They decreased
their exposure by Rs 840 crore.
According to Chawla, the debt crisis in Greece will have
some hiccups in the Eurozone, but it will not have a major
impact on the international financial community.
Greece is much smaller in scale and magnitude to what
the world has seen in the last one-and-a-half years, Chawla
said.
The fears of worsening crisis had led to the announcement
of a USD 147-billion bailout package for debt-stricken Greece
by the Eurozone nations and the IMF on May 2.
The Sensex fell all the five days last week, shedding a
whopping 789.6 points to close at 16,769.11 on Friday, 4.5 per
cent down over the preceding week.
However, the announcement of a nearly USD 1 trillion
rescue package for Greece resulted in the biggest single day
gain of 561 points in 10 months in Sensex, which closed at
17,330.55 on emergence of buying by foreign funds.
Chief Economic Advisor Kaushik Basu, too, recently said
the ongoing sovereign debt crisis in Europe may, in fact, turn
advantageous for the country's capital markets if it is
contained at the present level.
"If a crisis in another industrialised country is a
relatively small crisis, in fact, we get some very unusual
advantage. More money flows into India," Basu had said, adding
people look for safer havens to park their money. PTI MG
AHM
the global financial crisis faster than many others, Finance
Secretary of India Ashok Chawla on Monday allayed fears of
Greece debt crisis impacting the Indian economy.
"I think we are immune. We were immune when there was a
much larger international financial crisis," a visibly
confident Finance Secretary Ashok Chawla told reporters on the
sidelines of an Assocham function.
The European Union and the International Monetary Fund
(IMF) on Monday unveiled a mammoth nearly USD one trillion
(euro 750 billion) bailout package for troubled Eurozone
countries.
As far as India is concerned, the impact will be
minimal. In the short run, it might help India in terms of
India being regarded as a relatively more safe haven," Chawla
said.
"Capital flows are determined by various factors, one of
them quite clearly, evidently is the safer the destination,
more the money goes there," he added.
Meanwhile, the benchmark Sensex on the Bombay Stock
Exchange on Monday soared by 561 points, the biggest
single-day gain in nearly 10 months, on Strong buying support
from foreign institutional investors.
Since the start of 2010, the time around which fears of
sovereign debt crisis in Europe began to appear, there was a
net inflow of foreign institutional funds into the Indian
capital markets till April-end, which was Rs 54,606 crore.
However, in the first week of May, the FIIs turned net
sellers in the market on fears of Greek crisis deepening and
spreading to other nations in the Eurozone. They decreased
their exposure by Rs 840 crore.
According to Chawla, the debt crisis in Greece will have
some hiccups in the Eurozone, but it will not have a major
impact on the international financial community.
Greece is much smaller in scale and magnitude to what
the world has seen in the last one-and-a-half years, Chawla
said.
The fears of worsening crisis had led to the announcement
of a USD 147-billion bailout package for debt-stricken Greece
by the Eurozone nations and the IMF on May 2.
The Sensex fell all the five days last week, shedding a
whopping 789.6 points to close at 16,769.11 on Friday, 4.5 per
cent down over the preceding week.
However, the announcement of a nearly USD 1 trillion
rescue package for Greece resulted in the biggest single day
gain of 561 points in 10 months in Sensex, which closed at
17,330.55 on emergence of buying by foreign funds.
Chief Economic Advisor Kaushik Basu, too, recently said
the ongoing sovereign debt crisis in Europe may, in fact, turn
advantageous for the country's capital markets if it is
contained at the present level.
"If a crisis in another industrialised country is a
relatively small crisis, in fact, we get some very unusual
advantage. More money flows into India," Basu had said, adding
people look for safer havens to park their money. PTI MG
AHM
