Stocks, rupee recoup some losses on Rajan's rate comments

MUMBAI Fri Sep 20, 2013 1:12pm IST

An employee walks out of the Bombay Stock Exchange (BSE) building in Mumbai August 22, 2013. REUTERS/Danish Siddiqui/Files

An employee walks out of the Bombay Stock Exchange (BSE) building in Mumbai August 22, 2013.

Credit: Reuters/Danish Siddiqui/Files

Related Topics

Kishore Pandey, 82, lies on a bed as his daughter, Usha Tiwari, holds him and a priest stands by them (L) at Mukti Bhavan (Salvation House) in Varanasi, in the northern Indian state of Uttar Pradesh, June 19, 2014. REUTERS/Danish Siddiqui

Waiting to die at Salvation House

The city of Varanasi is Hinduism's holiest city and many Hindus believe that dying there and having their remains scattered in the Ganges allows their soul to escape a cycle of death and rebirth.  Slideshow 

MUMBAI (Reuters) - Government bonds, rupee and stocks recouped some losses on Friday after the RBI chief indicated the difference between the emergency funding rate and the main lending rate will be reduced in future.

Reserve Bank of India Governor Raghuram Rajan indicated the marginal standing facility rate would be lowered more than the quantum of repo rate hikes.

Rajan surprised markets in his maiden policy review earlier on Friday by raising repo rates to ward off rising inflation while scaling back some emergency measures put in place to support the rupee, which hit record lows in late August.

The Nifty retraced losses to 1.6 percent from a fall Of nearly 3 percent earlier.

The rupee recovered to 61.98/62.00 per dollar from 62.20/23.

India's 1-Year OIS recovered 10 basis points to 8.82 percent.

(Reporting by Archana Narayanan and Abhishek Vishnoi; Editing by Kim Coghill)

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

India-Nepal Ties

REUTERS SHOWCASE

Tackling Food Prices

Tackling Food Prices

India to free up extra 10 million tonne wheat in open market  Full Article 

Facebook Results

Facebook Results

Facebook beats Wall Street targets, stock hits record high  Full Article 

GM Recall

GM Recall

GM recalls 717,950 vehicles in U.S., not for ignition switches  Full Article 

Hyundai Motor Results

Hyundai Motor Results

Hyundai Motor Q2 profit slips as firmer won, U.S. discounts hurt  Full Article 

Nokia Results

Nokia Results

Nokia raises networks outlook after Q2 profit beats estimates  Full Article 

Factory Sector

Factory Sector

China July HSBC flash PMI at 18-month high of 52.0   Full Article 

Breakingviews

Breakingviews

Apple winds up earnings hope for new gadgets  Full Article 

Reuters India Mobile

Reuters India Mobile

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