Markets reacting to govt's poor handling of coronavirus crisis: Chidambaram

Former FM says markets have taken a dim view of the 'virtually coerced investment by SBI and private sector banks in the equity of failed YES Bank'

Senior Congress leader and former finance minister P Chidambaram on Monday blamed the sharp decline in benchmark stock indices on the government’s poor handling of the coronavirus crisis facing the country.

The BSE benchmark Sensex and the National Stock Exchange (NSE) Nifty suffered a sharp decline in early trading on Monday. At 12:20 pm, the Sensex was 1,817 points, or 5.33 per cent lower than its previous close, at 32,287. The Nifty was down 507 points, or 5.09 per cent, at 9,448.

In a series of Twitter posts, Chidambaram said: “As expected the market has taken a dim view of the virtually coerced investment by SBI and private sector banks in the equity of the failed YES Bank... The Sensex and Nifty are also reacting adversely to the government’s handling of the coronavirus challenge.” 

Commenting on Prime Minister Narendra Modi’s move the previous day to get in touch with other member nations of the South Asian Association for Regional Cooperation (Saarc) and proposing a common fund to deal with coronavirus, Chidambaram said: “There may be advantage in doing a video conference with SAARC member nations. But I think it is more important for the PM to confer immediately with the chief ministers... I think the states are ahead of the Centre in handling the crisis. The time has come for the central government to take firmer, bolder and tougher measures.”