Finance Minister Pranab Mukhejee today ruled out withdrawal of fiscal stimulus packages till the economic recovery is on a strong footing, an assertion that came on a day when stock markets tumbled by nearly 500 points.

"I have stated very clearly, am not thinking of resorting to exit strategy (from stimulus packages) right now," Finance Minister Pranab Mukherjee said at Economic Editors Conference.

Mukherjee said he would take a view on withdrawing from stimulus packages after he is convinced that the economy has come out of the slowdown. "I have not yet seen even the second quarter results. After seeing the results of quarter two and quarter three, I will take a view on it."

Meanwhile, stock markets tanked 491 points to close the day at two-month low of 15,404.94 points on poor earnings by some corporates and sluggish global equities.

Bourses across the world nosedived today amid uncertainty over swiftness of economic recovery. On other hand, Australia increasing interest rates and US manufacturing data showing signs of improvement augmented fears of withdrawal of various stimulus packages, sparking selling by investors.

Mukherjee said recent months have witnessed some clear signs of a turnaround in the growth rate. "The industrial growth... Has improved considerably in the months of June and July, 2009, with growth increasing to 8.2 per cent and 7.2 per cent followed by 10.4 per cent in August, 2009," he said.

More importantly, FIIs have returned to the Indian market in the last five months, he said, adding," I will not put any curb on foreign flows".

Mukherjee also asked the world community not to exit from stimulus as this is not the right time to do so.

He would shortly be going to Scotland for G-20 Finance Ministers' meeting.

"In the last meeting of the G20 meeting, I articulated the same views," he said.

The Finance Minister also said countries should devise exit strategy as per the impact of global financial crisis on their economies and there cannot be any straight jacket formula for it.

The government has cut excise duty by six per cent and service tax by two per cent in phases and stepped up plan expenditure to perk up the slowing down economy.

Along with it, the RBI also loosened money supply to increase flow of funds for liquidity-strapped economy.

Now, the central bank has initiated the first step to roll back the monetary stimulus.

It raised the requirement for banks to keep portion of their deposits in the form of government bonds, gold and cash, by one percentage point to 25 per cent.

Besides, it discontinued with the special liquidity window with banks for funding mutual funds and others.

RBI was the third central bank in the world to start tightening money supply after Israel and Australia.

After RBI's move, Norway also upped its policy rates. Today again, Australian central bank hiked benchmark interest rate, giving rise to apprehensions that governments may also withdraw fiscal stimulus. This resulted in bloodbath in stock markets.