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

REUTERS SHOWCASE

Adani Project

Adani Project

Australia approves Adani's $16 bln Carmichael coal project  Full Article 

India-U.S. Talks

India-U.S. Talks

Kerry to woo Modi's India, but quick progress unlikely  Full Article 

Paring Debt

Paring Debt

Jaiprakash to sell hydro plants to Reliance Power  Full Article 

Nifty Falls

Nifty Falls

The broader index hits lowest in nearly a week on profit taking  Full Article 

Mideast Conflict

Mideast Conflict

U.N. Security Council calls for humanitarian ceasefire in Gaza  Full Article 

Market Eye

Market Eye

Foreign investors prefer Indian cyclicals, utilities - Macquarie  Full Article 

Debt Investment

Debt Investment

India's FII debt limit hike credit-positive, says Moody's  Full Article 

Reuters India Mobile

Reuters India Mobile

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