Asianet NewsableAsianet Newsable

Government wins first Rexit round

Government wins first rexit round

 

The government didn't want either the nation or the world to believe 'Rexit' would spell doom for Indian markets said a report in the Times of India. And it showed it was prepared to put its money where its mouth was. Since the start of Monday's session, regulators RBI and Sebi were on guard to check excessive volatility while domestic financial institutions SBI and LIC entered the forex and stock markets, respectively, to neutralise early weaknesses. There was also talk about the government having sounded out big bulls for support in case of heavy selling by foreign institutions. FIIs sold Rs 537 crore (net), but that was more than neutralised by Rs 724 crore of purchases by domestic institutions.

All segments of the financial markets opened volatile, but with such regulatory and institutional firepower on standby or in service, the markets steadied in early trade and then rose as the government announced a slew of FDI reforms.

What added to the cheer was the sight of monsoon clouds moving towards central and western India. And in the global market, the growing sense that Britain wouldn't exit EU had seen Asian markets open strongly. At the close of session, sensex was up 241 points at 26,867, the rupee ended just 24 paise weaker at 67.32 to the dollar while the price of 10-year government bonds closed marginally higher. Investors were richer by Rs 90,000 crore as BSE's market capitalisation touched Rs 101 lakh crore.

On Day 1, in the financial markets, the battle around Rexit had been won by the government.

Follow Us:
Download App:
  • android
  • ios