Ananth Narayan of Standard Chartered has given his vote of confidence to the Reserve Bank of India's (RBI) measures on the rupee by saying the currency hitting its all-time low of 61.80 again against the dollar is unlikely now.
"The action since July 15 and the words, which have come in from the ministry, clearly indicated the authorities are watching it extremely carefully. So purely from a sentiment perspective and from a market confidence perspective, I think the often talked about line in the sand is now there again," adds Narayan.
The RBI will be auctioning Rs 22,000 crore of government cash management bills every week, it said in a statement, without specifying for how many weeks the sales would last.
Narayan expects the RBI to announce more policy reforms if the rupee starts showing signs of weakness again.
The market has managed to gather pace in afternoon trade as the Nifty is above 5600 led by metals and pharma but banks are refusing to budge from the weak levels. The Sensex is up 200.37 points at 18989.71, and the Nifty adds 55.25 points at 5620.90. About 1214 shares have advanced, 744 shares declined, and 116 shares are unchanged
The midcap index jumps over a percent.
Among the gainers, Tata Steel and Jindal Steel are leading with a gain of around 8 percent each. Shares of metal companies are gaining riding on positive Chinese economic data.
China's factory production increased 9.7 percent in July Y-o-Y, the National Bureau of Statistics said on Friday. China is the world's largest consumer of copper and aluminum.
On the downside is SBI (down 3 percent) on the back of dismal April-June qaurter. India's largest lender disappointed the street with the first quarter net profit falling higher-than-expected nearly 14 percent year-on-year to Rs 3,241 crore, dented by higher provisions against bad loans and muted growth in the net interest income, which grew just by 3.5 percent to Rs 11,512 crore in April-June quarter from Rs 11,119 crore.
However, the growth in net interest income was a little higher than analysts' forecast.
"The action since July 15 and the words, which have come in from the ministry, clearly indicated the authorities are watching it extremely carefully. So purely from a sentiment perspective and from a market confidence perspective, I think the often talked about line in the sand is now there again," adds Narayan.
The RBI will be auctioning Rs 22,000 crore of government cash management bills every week, it said in a statement, without specifying for how many weeks the sales would last.
Narayan expects the RBI to announce more policy reforms if the rupee starts showing signs of weakness again.
The market has managed to gather pace in afternoon trade as the Nifty is above 5600 led by metals and pharma but banks are refusing to budge from the weak levels. The Sensex is up 200.37 points at 18989.71, and the Nifty adds 55.25 points at 5620.90. About 1214 shares have advanced, 744 shares declined, and 116 shares are unchanged
The midcap index jumps over a percent.
Among the gainers, Tata Steel and Jindal Steel are leading with a gain of around 8 percent each. Shares of metal companies are gaining riding on positive Chinese economic data.
China's factory production increased 9.7 percent in July Y-o-Y, the National Bureau of Statistics said on Friday. China is the world's largest consumer of copper and aluminum.
On the downside is SBI (down 3 percent) on the back of dismal April-June qaurter. India's largest lender disappointed the street with the first quarter net profit falling higher-than-expected nearly 14 percent year-on-year to Rs 3,241 crore, dented by higher provisions against bad loans and muted growth in the net interest income, which grew just by 3.5 percent to Rs 11,512 crore in April-June quarter from Rs 11,119 crore.
However, the growth in net interest income was a little higher than analysts' forecast.
No comments:
Post a Comment