New Delhi: Finance minister, P Chidambaram, on Wednesday said that he does not see any bubble-like situation in the stock markets even as he maintained that the government was keeping a close watch on the sensex.

The sensex had touched an all time intra-day high of 6,480.20 points on Wednesday before closing at 6,413.66 points.

"I am of the opinion that no bubble is building up in stock markets, but we are watching the sensex very carefully," Chidambaram said winding up the debate on Supplementary Demands for Grants in the Rajya Sabha.

Chidambaram said that the surge in sensex is driven by increased flow of investments from foreign institutional investors (FIIs). "If FIIs think India is quite outstanding, then it is not bad", he added.