No need to panic over Iraq tensions: Finance secretary

Finance Secretary Arvind Mayaram Saturday said there is no need for Indian investors to panic due to unrest in Iraq as the government is watching the situation.

Fears of a full-blown civil war in Iraq led to a sharp jump in crude oil prices putting pressure on currencies and equities markets globally.

The Indian stock market's benchmark Sensex slumped by 348 points or 1.5 percent Friday, the biggest single day loss in four months, while the rupee slumped by 0.9 percent.

Talking to reporters on the sidelines of an event here, Mayaram expressed the hope that the situation would improve in Iraq soon.

"There is no reason to panic as far as India is concerned. I don't see any immediate reason for panic," the finance secretary said.

Mayaram urged investors to remain calm saying there was no threat of a disruption of oil supply to India due to the Iraq unrest.

"As far as India's long term supply is concerned, we are fairly well established and I don't see any disruptions. There is a need to remain calm and the government is fully watchful," he said.