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

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:

Surprise Rate Cut

Reuters Showcase

Insurance Bill

Insurance Bill

Opposition support bolsters prospects for insurance reforms  Full Article 

SBI Share Sale

SBI Share Sale

SBI's up to $2.4 billion share sale likely by end April - sources   Full Article 

Eicher Share Sale

Eicher Share Sale

Truck maker Volvo sells shares in Eicher Motors  Full Article 

Beef Ban

Beef Ban

After beef ban, Hindu groups force abattoirs to close   Full Article 

Monsoon Season

Monsoon Season

Exclusive - India expects better monsoon rains this year  Full Article 

Services Growth

Services Growth

Services growth at eight-month high in Feb - HSBC PMI  Full Article 

'India's Daughter'

'India's Daughter'

Documentary on 2012 Delhi gang rape banned in India  Full Article 

Capex Slashed

Capex Slashed

Cairn India slashes 2015-16 capex on falling crude   Full Article 

Strong Start

Strong Start

Airwaves auction off to strong start, bids near $10 billion.  Full Article 

Reuters India Mobile

Reuters India Mobile

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