Markets will stabilise in next few days: Pranab
10 Aug 2011
Finance minister Pranab Mukherjee today said the stock market has started stabilising after days of uncertainty and the government, the Reserve Bank and market regulator SEBI are working in close coordination to bring stability while also ensuring adequate liquidity in the market.
"There will be no dearth of liquidity of forex," Mukherjee said.
Taking a cue from the 400-point surge in the BSE sensitive index (Sensex) in the opening trade today, the finance minister said the stock markets would return to normal in a few days.
The BSE benchmark snapped a six-day losing streak, rallying 1.6 per cent during morning trade on Wednesday. The recovery has also been aided by the US Federal Reserve's pledge to keep interest rates near zero for two more years.
"One thing is certain that confidence has come back in respect of Indian markets," Mukherjee said, adding, "There has been a slow recovery and in couple of days it will be stable."
The 30-share BSE Sensex, which had lost nearly 1,455 points over the past six sessions, hitting a 14-month low below the 17000-mark, rose 398.55 points to 17,256.46 on Wednesday as stocks opened with gains.
