Citywire printed articles sponsored by:
View the article online at http://citywire.co.uk/wealth-manager/article/a700889
Indian markets surge as RBI details plan to stabilise reserves
by David Campbell on Sep 05, 2013 at 08:53
India led overnight gains in stock markets as investors gave an enthusiastic endorsement to incoming Reserve bank of India governor Raghuram Rajan’s plans to stabilise the economy.
The country’s banking sector put in its biggest one-day gain since 2009, surging 6.7% at the head of a more general 2.15% gain on the Sensex Index.
India has seen the rupee drop to record lows this year, falling hard against a resurgent dollar. That has put pressure on foreign reserves, casting further doubt over economic policies already being questioned by sceptical investors.
Rajan outlined plans to offer currency swaps on private banking sector non-rupee deposits, a move Bank of America Merrill Lynch estimates will raise $10 billion in reserves, according to Bloomberg.
He also outlined plans for a managed liberalisation of the banking sector, reducing restriction on new branches and ease lending to the private sector.
News sponsored by:
Today's top headlines
More about this:
On the road
by Alex Steger on Dec 11, 2013 at 10:19