New Delhi: The Government on Tuesday said the stock market crash for the second day in a row was not a cause for worry and the correction was "perhaps inevitable".
While Finance Minister P Chidambaram maintained his remarks on stock markets on Monday, his junior P K Bansal said investors must take informed decisions.
"Nobody questioned when the Sensex rose to 14,000 level. There is no cause for worry if investors take informed decision," Bansal said, and added that some correction in the market was perhaps inevitable.
Chidambaram, however, did not comment on the 400-point decline in BSE Sensex and said: "What I had to say, I had said yesterday."
Asked if the markets fell as a reaction to slowdown in industrial output, he said: "I have not seen the figures yet."
Industrial production grew at a slower rate of 6.2 per cent in October, the lowest this fiscal, against 9.8 per cent in the same month last year.
The Finance Minister said on Monday the stock market fall was not a cause for worry and banking shares, which led the decline, would re-adjust on their good profitability.
"There is no need to worry. Stock markets are at their highs. Bank stocks are falling because of CRR hike," Chidambaram had said.
The benchmark Sensex on Tuesday crashed by nearly 600 points in pre-close trading, as foreign investors sold their holdings on concerns of a slowdown in industrial growth. At close, Sensex was down 404.41 points at 12,995.02 points. Sensex had fallen by 400.06 points on Monday.
Similarly, National Stock Exchange index Nifty fell 132.60 points to close at 3,716.90.
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