New Delhi, Aug 17 (IANS): Terming the Indian equity sell-off that saw the Sensex crash nearly four percent as a result of the US data reaction, Finance Minister P. Chidambaram Friday urged investors to maintain calm.

"I think this is time for calm. This is time for reflection. Let's see what happens next week," Chidambaram told reporters here while reacting to the huge sell-off in the markets.

The finance minister said stock markets and the rupee were reacting on US data and such over-reaction was unwarranted.

"When calm is restored in the market, people will begin to understand India market indicators must basically reflect Indian market conditions. They should not be so sensitive to data coming out of the US," Chidambaram said.

Chidambaram's reaction came after the rupee slipped below 62 against the dollar for the first time and the key indices of the stock markets crashed by nearly four percent.

The 30-scrip sensitive index (Sensex) of the S&P BSE tumbled 769.41 points or 3.97 percent to 18,598.18 points.

The wider 50-scrip Nifty of the National Stock Exchange closed Friday's trade at 234.45 points or 4.08 percent down at 5,507.85 points.

This is the biggest single-day drop in the Indian equities markets.

The rupee slipped below 62 against a dollar for the first time surpassing the previous record low of 61.80 hit on Aug 6.

Chidambaram expressed hope that the markets would calm down next week and the measures announced by the government recently would help in the recovery and stabilising the situation.

"We have taken a number of measures. Let's wait for the first quarter growth numbers," he said.