New Delhi: Finance Minister Pranab Mukherjee on Saturday described the downgrading of the US government by credit rating agency as a "grave situation" and said it has to be analysed.
"We will have to analyse it. It will require some time. Situation is grave and there is no gain in making off-the-cuff remarks," he said.
In an unprecedented move, Standard & Poor's downgraded the US government s 'AAA' sovereign credit rating - a development which raises concerns that investors will lose confidence in its economy.
This comes a day after a bloodbath was witnessed in the global markets including those in Asia. In India, the BSE Sensex plunged more than 700 points before recovering partially with investors selling across the board.
Seeking to allay domestic fears, Mukherjee had on Friday said that the market fall was due to external factors.
"This is nothing domestic. It is substantially due to external factors. Stock markets fell due to global factors like weak recovery in US and spread of debt burden in Eurozone. Current volatility is temporary," he had said.
Market regulator SEBI said it was watching the situation closely. "... And our belief is that everything is perfect and right in our market. There is nothing for the people to worry," said SEBI Chairman UK Sinha.
"Our risk management system is working perfectly. All the settlements are taking place," he added.
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