Market turmoil due to fall in Adani group shares 'storm in tea cup': Fin Secy

The stock market turmoil created by rout in Adani group shares is a storm in a tea cup from a macroeconomic point of view finance secretary T V Somanathan said on Friday emphasing that Indias public financial system is robustThe senior most bureaucrat in the finance ministry also said that movements in the stock market per se is not the governments concern and there are independent regulators to take necessary actionReplying to a question on the impact of the fraud allegations on the Adani group on financial system considering banks and insurance companies exposure to the group Somanathan said Indias public financial institutions are robustThere is absolutely no concern from the point of view of financial stability either for depositors or for policyholders or for anyone holding shares in these institutions The share of any one company is not such as to create any impact at the macro level and so there is absolutely no concern from that point of view he told PTI in a postbudget interviewThe stock price of Adani Enterprises fell by over 70 per cent from its peak of Rs 4190 in December last yearSince January the BSE Sensex has slumped by over 1000 points largely driven by sell off in Adani group stocksAlso Read Oppositions demand for JPC probe into Adani issue not justified Mahesh JethmalaniAsked if the turmoil in stock market will impact revised estimates of disinvestment collections Somanathan said these gyrations do not affect the macro economy at allThey are a side show They are of interest to those who are interested in stock markets and investment From macroeconomic point of view this is a nonissue Its a complete nonissue from our point of view Its a storm in a tea cup as far as macroeconomics are concerned not in respect of marketsThe secretary further said that the fluctuations in the stock market prices is not a concern and it is an universal phenomenon of all stock markets in all circumstancesThe governments concern is with creating the right investment environment creating a well regulated set of financial market making sure there is transparency and that the market functions well making sure the information asymmetry is reduced and making sure the governments own macroeconomic policies are sound Somanathan saidAdani Group stocks have taken a beating on the bourses after USbased shortseller Hindenburg Research made a litany of allegations in a report including fraudulent transactions and share price manipulation at the Gautam Adaniled groupHindenburg released the report on January 24 the day on which Adani Enterprises Rs 20000crore followon share sale opened for anchor investors while the allegations have been rejected by the conglomerateThis story has been sourced from a third party syndicated feed agencies Midday accepts no responsibility or liability for its dependability trustworthiness reliability and data of the text Midday managementmiddaycom reserves the sole right to alter delete or remove without notice the content in its absolute discretion for any reason whatsoever