Sharp sell-off in stock market 'short term phenomena': DEA

Seeking to comfort jittery investors, Economic Affairs Secretary Subhash Chandra Garg today said the sharp fall in the stock market is a "short term phenomena" and they need not worry as India's growth story is intact.
A day after the government announced imposing 10 per cent long term capital gains tax (LTCG) in equity, the Sensex plummeted 840 points -- its biggest single-day slump since August 24, 2015 -- while the broader NSE Nifty tanked over 250 points to finish below the 10,800-mark.
"Market is reacting to it (LTCG tax)...There was some reaction. It was expected. They are likely to react, but I think it is a short term phenomena," Garg told PTI in an interview.

He further said India's growth story is intact "so investors should have no worry".
Market mood suffered another setback after Fitch Ratings today said high debt burden of the government constrains India's rating upgrade.
In his Budget Speech yesterday, Jaitley said the country is expected to grow at 7.2-7.5 per cent in the second half of the current fiscal.
The GDP growth rebounded to 6.3 per cent in the three months of July-September from a three-year low of 5.7 per cent in the first quarter of the current fiscal.
India is firmly on course to achieve over 8 per cent growth and becoming the world's 5th largest economy, he added.