Global events behind stock markets crash, says RBI

Reserve Bank of India (RBI) Deputy Governor S.S. Mundra on Tuesday said the crash in stock markets was caused due to global events, adding that the country's economic fundamentals were strong.

"Fluctuations were bound to occur as the economies across the globe were inter-linked," said Mundra.

"We are on the right path, the reform agenda is progressing in the right direction. Having said that, we have always been telling that, we are at the stage where we cannot be disconnected from the global events. We are interconnected market and there would be occasional these kind of things which will happen," he added.

Stock markets fell nearly two percent on Tuesday to their lowest in around a year on concerns that foreign investors would pare some of their holdings as China's equity markets continued to tumble.

Recovering very partially from yesterday's huge sell-off, the Sensex at the Bombay Stock Exchange gained 291 points, to close at 26,032, after very volatile trade. The Nifty at the National Stock Exchange gained 72 points, to 7,881.

Earlier, Sensex had gained 269 points, to 26,010 in afternoon trade, amid intense volatility. The Sensex had opened on a strong note, surging 383 points within minutes of the start of trade, until volatility took over, and saw the Sensex drop into the red, and swing over 800 points between its high and lows. Similarly, the Nifty at the National Stock Exchange had climbed 81 points, to 7,890.