May 18, 2006


What were you smoking then, Sir?

Finance Minister P. Chidambaram at commenting on various milestones (in both directions) of Sensex.

[December 2004] Sensex at 6000 : "I don't react. As long as the Sensex is driven by the fundamentals of the economy, I am very happy."

[July 2005] Sensex at 7000 : “If the Sensex crosses 8000, then I think that I would be concerned."

[September 2005] Sensex at 8000: "We are looking at the price-earnings (PE) ratio (of Sensex and Nifty). At this level, they look comfortable."

[December 2005] Sensex at 9000 : "I expect the Sensex to rise with investor and business confidence rising. However, SEBI and I watch the movement carefully to see if there is any manipulation...... My impression is that mutual funds are quite active in the markets, meaning thereby that small investors are putting their money in the mutual funds.

[March 2006] Sensex down by 216: "It's a correction. It's nothing."

[May 15, 2006] Sensex down by 463 : "I will put it as a correction provoked by reasons which are quite understandable. All metal prices are down and there is some impact of cement prices... and increase in US Fed rate. All markets are doing the same."

[May 18 2006] Sensex down by 600, and on its way to register a fall of 826 : "Everyday movement in the stock markets does not require a comment."

Thanks for the wisdom dished out today, Sir. Is this enlightenment achieved in last 72 hours?

Update : Well, apperantly, he is back to his original self - commenting on every movement of stock market. In a report published at 18:00 today, he said ".... This is a manufactured crisis based on uninformed reporting." Looks like the massive 7% fall has made him to stand and take a look.

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