Indian market is sound and attractive: Chidambaram

New Delhi: Amid fears of global financial meltdown hitting India, the Finance Minister, P. Chidambaram, today assured investors that Indian market is "sound and attractive" and promised them to take necessary action if needed.

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"There is nothing to worry about the Indian market. We are suffering the consequences of turbulence around the world. Basically, the Indian market is sound, attractive and well regulated market," he told reporters here.

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The government is monitoring the situation round-the-clock, he said, adding: "The regulations that are in place are adequate. But if the regulations are to be tweaked, we will do so.”

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He further added that steps would to be taken, if needed, for smooth functioning of the market.

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Commenting on withdrawal of FIIs from equity market, he said, "FIIs are selling, but I do not think all FIIs are selling nor do I think they are selling all the time."

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They are selling because they have got payment obligations, he said, adding, "Some FIIs are buying and perhaps more FIIs will buy having regard to the fact that India is still a very attractive market to invest and Indian market is a well-regulated market.”

Referring to the rejection of $700 billion-bailout package by the US House of Representatives, Chidambaram said: "Bailout package is a concern of US Congress and the US Government. It is agreed by everyone that bailout is necessary. How the Congress will reconcile to the views of two major political parities, it is not for me to comment."

He said, "Of course, we will be greatly helped if a bailout package is quickly approved by the US Congress."

Chidambaram expressed hope that the US will resolve its differences and pass a bailout package within the next couple of days.

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On Monday, the US House of Representatives rejected the $700 billion-bailout package for battered American financial institutions, sending markets around the globe into a tailspin.

Indian markets were also down in the early trade, but they recovered later after the remarks by the SEBI Chairman, C.B. Bhave, that there is no need to panic and there is no settlement issue in the market.