RBI governor Dr Raghuram Rajan had a positive view on the fall of the Indian stock markets on Wednesday and said the Sensex came back quite a bit in the last few hours of trading.
RBI governor Dr Raghuram Rajan had a positive view on the fall of the Indian stock markets on Wednesday and said the Sensex came back quite a bit in the last few hours of trading.
He was responding to a question on the global volatility and the nervousness in the Indian markets posed by CNBC in Davos. Dr Rajan said “They (FIIs) take the money off the table in a hurry when they are doing it everywhere, but then they come back, and so my sense is that after the initial volatility, things will stabilise, people will try and look for the good, stable emerging markets.”
On the rupee he said, it has been relatively stro-ng amongst emerging market currencies, “so we are affected by the same kind of jitters, but if you are an emerging market, you focus on the fundamentals, try and get inflation down, and get your current accou-nt deficit down, keep fiscal on target, do all the good things, and then people reward you.”
