New Delhi, Aug 24 (IANS): Reacting to the sharp fall in Indian markets when they opened trading on Monday, Finance Minister Arun Jaitley on Monday held "external factors" responsible for the current volatility.

"Factors responsible for this (market fall) are entirely external, there is not a single domestic factor involved," Jaitley told reporters here on the sidelines of the conference of chief commissioners of the Central Board of Excise and Customs.

"No doubt this turbulence is transient and temporary in nature and the markets will settle down once the turbulence is over," he said.

Weak global cues and a steep fall in Shanghai stocks, along with concerns over the Indian government's stand on minimum alternate tax (MAT) shaved 1039.34 points, or nearly 3.80 percent, off a key equity index of the Bombay Stock Exchange at noon on Monday.

The rupee also hit a fresh two-year low of 66.47 to a dollar.

"All concerned authorities, the government of India, the Reserve Bank are watching the situation very closely," the minister said.

"As the RBI has said, they are watching the situation very closely," Jaitley added.