Market crash due to FII pullout, weak rupee: FM

Finance Minister Pranab Mukherjee on Wednesday attributedthe stock market crash to withdrawal of funds by foreign investors anddepreciation of the rupee.

"Markets have crashed because of continuous withdrawalof (funds by) FIIs . There is still uncertainty prevailing in the Eurozone.Rupee depreciation also has adverse impact. All these cumulative effects arethere," he told reporters here.

He said this while responding to questions on sharp plungein the stock markets. During the intra-day trade, the BSE Sensex crashed by 587points, but recovered later.

Value of the Indian Rupee had touched an all-time low of52.73 against the US dollar on Tuesday.

 Foreign InstitutionalInvestors (FIIs) have withdrawn Rs 2,352 crore from the equity market, betweenNovember 16 and November 22 this year, adding to the woes of stock markets.

Besides other things, fresh concerns about the health of theglobal economy, following downward revision of the US growth rate in the thirdquarter of 2011, also dampened confidence of investors.