NEW DELHI The Reserve Bank of India (RBI) will step in to provide more liquidity into the market if the need arises, deputy governor with the central bank Keshab Chandra Chakrabarty said on Wednesday.
He declined to say whether the RBI will resort to buying bonds through open market operations to inject liquidity.
Borrowings in the daily repo auction have risen above 1 trillion rupees for six consecutive sessions, nearly double the deficit level seen as acceptable by the RBI.
(Reporting by Arup Roy Choudhury; Writing by Neha Dasgupta)
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With the Nifty breaching 8,500, sentiments are again bullish. But markets have been in the 8,200-8,600 range for some time and stocks across the board do not give the required confidence except for the liquidity factor. Many frontline stocks are not participating on the upside and the core sector is in a downtrend, writes Ambareesh Baliga. Column