When the stock markets are peaking new heights, there was an advice for small investors from an unexpected quarters. Finance Minister Palaniappan Chidambaram cautioned the investors on Friday against showing any undue exuberance, when markets are surging.Inaugurating the Tax Information Network (TIN) of the Income-Tax Department in Mumbai, Chidambaram said, “The capital market in the country is doing well and I’ve just got the information that BSE Sensex has closed at its all-time high. The current level of the benchmark indices reflects the potential of the economy.”“The market is a place where there is bound to be the speculative activity and every class of players has to take a measured view of the rise and fall in the market. Corporates have performed well during the first quarter of the financial year but investors should not show undue exuberance,” he added.He further said the economy is doing well and is expected to do well further during the current year. “What we see in the stock market is the reflection of the economy and as per my knowledge all the market players are behaving responsibly,” Chidambaram said.On India’s response to revaluation of yuan, Chidambaram said “we do not think it will have a major impact on India and there will not be any change in India’s foreign exchange management policy.”On the interest rate scenario, the finance minister said there is enough liquidity in the market and the Reserve bank of India (RBI) continues to absorb large amounts of money through reverse repo.
