MARKET EYE-Bank shares up on RBI's liquidity measures

Wed Dec 26, 2012 1:46pm IST

Related Topics

Stocks

   

* Indian lenders, including ICICI Bank, are higher on
hopes of easing liquidity as the Reserve Bank of India continues
with cash injection measures and rate cut hopes in January.
* Advance tax outflows and an increase in the government's cash
balance with the RBI have temporarily exacerbated liquidity
tightness in the sector. 
* The central bank announced on Monday it would conduct open
market operations (purchase of government securities) for an
aggregate amount of 80 billion rupees ($1.5 billion) on Dec. 28.
* "We believe that the RBI will continue to announce open market
operations in an ad hoc manner to inject liquidity into the
banking system," Morgan Stanley said in a note.    
* Since Dec. 4, the RBI has added liquidity worth 311.6 billion
rupees ($5.7 billion) through three rounds of OMOs.
* ICICI Bank is up 2.12 percent while State Bank of India
 rises 1.6 percent.

 (manoj.dharra@thomsonreuters.com)
FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Market Eye

REUTERS SHOWCASE

Bullish on Equities

Bullish on Equities

Bullish on Indian equities, but gains seen 'less sharp'- Goldman Sachs  Full Article 

Streamlining Operations

Jet Streamlines

Jet Airways chairman says looking to restructure debts, talking to bankers  Full Article 

Political Economy

Political Economy

Analysis - Watch what markets don't do as world politics turns nasty   Full Article 

Photo

Honda's India Thrust

Honda's India unit to account for 25 pct of Asia Pacific sales by March 2017 - exec   Full Article 

Short of Expectations

Short of Expectations

Apple revenue lags Street's view despite strong China growth  Full Article 

Mircosoft Results

Microsoft Results

Microsoft revenue rises, profit falls as Nokia absorbed  Full Article 

Relief For Sahara

Relief For Sahara

Supreme Court could allow Sahara boss to conduct asset sale talks, company says.  Full Article 

Photo

Food Scandal

Five held in China food scandal probe, including head of Shanghai Husi Food   Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage