Stock market volatility short-lived: India Inc

New Delhi: As stock exchanges suffered their worst-ever single-day fall, India Inc on Monday said the volatility is short-lived and the markets are expected to stabilise as the country's economy rests on strong fundamentals, comments that may soothe the nerves of jittery investors.

In its biggest-ever single-day drop in absolute terms, the BSE Sensex crashed over 1,941 points and the NSE Nifty tumbled 538 points as no let-up in coronavirus spread and massive crude oil plunge fuelled global recession fears.

Besides, both indices also marked their biggest intra-day fall of all-time. Assocham Secretary General Deepak Sood said the panic in the financial markets owing to a massive fall in the crude oil prices does not affect India's macroeconomic picture and on the contrary, low fuel prices would help the country.

"India being a large importer of crude oil, fall in prices would be a positive for the Indian economy although there is a global sentimental downside.

Going forward, low prices of crude can be a demand driver for India, from the automobile industry to consumption as inflation would be tamed. Lower inflation would also help further in cutting the interest rates," said Sood.

PHD Chamber of Commerce and Industry President D K Aggarwal said the volatility in the rupee and stock markets is short-lived and primarily driven by the spread of coronavirus in many countries.