ZCZC
BCN-15
INDIA-RESERVE-BANK-FINANCIAL-MARKETS
Closely monitoring financial markets along with Sebi, ready to take
actions: RBI
Mumbai, Sep 24, 2018 (BSS/PTI) – The Reserve Bank Sunday said that it
along with Sebi is “closely monitoring” recent developments in financial
markets and “ready” to take actions, if necessary, as domestic bourses
witnessed sudden mid-session plunge last Friday.
“The Reserve Bank of India and the Securities and Exchange Board of India
are closely monitoring recent developments in financial markets and are ready
to take appropriate actions, if necessary,” the central bank said in a brief
statement.
On Friday the BSE Sensex, which opened on a strong footing, suddenly tanked
1,127.58 points, or 3.03 per cent, to hit a low of 35,993.64 in afternoon
trade, before staging an equally sharp recovery within minutes.
It finally closed at 36,841.60, down 279.62 points. It saw an intra-day
swing of 1,495.60 points.
The broader NSE Nifty shed 91.25 points to finish at 11,143.10.
The indices closed in the red for the fourth day in a row, during which
investors lost a massive Rs 5.6 lakh crore.
Overseas investors have pulled out a massive Rs 15,365 crore (USD 2.1
billion) from the capital markets so far in September, after putting in funds
during the previous two months, on widening current account deficit coupled
with global trade tensions.
Foreign portfolio investors (FPIs) remained net sellers and offloaded
equities worth Rs 2,184.55 crore while domestic institutional investors
(DIIs) made purchases worth a net Rs 1,201.30 crore Wednesday, provisional
data showed.
The Indian currency has also witnessed a massive plunge in the recent past
due to rising trade and current account deficits in the wake of rising crude
oil prices.
However, the rupee was bullish on Friday for the second day, rising 17
paise to end at 72.20 against the US dollar.
BSS/PTI/HR/1020