A storm in a teacup is an idiom meaning to show anger and concern over a matter that is not important. In an interview with PTI, Somanathan, the top official at the Ministry of Finance, said India’s public financial system is very strong and the volatility of the stock market is not a concern for the government.
Finance Secretary TV Somanathan said on Friday that the stock market panic triggered by a sharp drop in Adani Group shares is just a “storm in a cup of tea” from a macroeconomic point of view. A storm in a teacup is an idiom meaning to show anger and concern over a matter that is not important. In an interview with PTI, Somanathan, the top official at the Ministry of Finance, said India’s public financial system is very strong and the volatility of the stock market is not a concern for the government.
He said that independent regulators are there to take the necessary steps in this regard. When asked about the possible impact of fraud allegations in Adani group companies on banks and insurance companies, the Finance Secretary said that there is nothing to worry about the financial stability of depositors or policyholders or any shareholder of these companies. The actions of any company are not such that they can have an impact on the macroeconomic level. So there is nothing to worry about from that point of view.
The valuation of the companies of the Adani group has fallen by 100,000 million dollars in the last ten days. Shares of the group’s flagship Adani Enterprises have fallen more than 70 percent from their December highs. Somanathan also ruled out any possibility that a sharp drop in Adani Group shares has anything to do with the revised estimates for divestment charges. It’s a case of running to the limit, he said. Those who are interested in the stock market and investments are interested in it. But this is not a problem from a macroeconomic perspective.
In our opinion, this is not a complete problem. From a macroeconomic standpoint, it’s a storm in a teacup. He said that volatility in stock market prices is not a cause for concern and this phenomenon is seen in all stock markets. The government’s concern, he said, is to create the right investment climate and build a well-regulated financial market. Along with this, transparency and proper functioning must be ensured. There has been a continuous sell-off since a Hindenburg Research report accused the Adani group of fraud to inflate share prices. Adani Enterprises has suffered the most during this period.
Disclaimer:Prabhasakshi has not edited this news. This news has been published from PTI-language feed.