Crisis in Greece may hit Indian capital market but govt yet to frame firm response

There can be outflow of capital from India due to interest rates in Europe, says the finance secretary

GN Bureau | June 29, 2015


#Greece   #financial   #stock market   #rbi   #reserve bank of india   #Europe  

Admitting that the situation in Greece may impact India in capital inflows and outflows, finance secretary Rajiv Mehrishi on Monday said the government is in touch with the Reserve Bank to deal with the issue.

"Greece crisis does not have any effect directly on India. (But) interest rate may firm up in Europe. In case of firming up of interest rate in Europe, there can be outflow of capital from India," he said.

"Obviously we are in touch with the RBI but they will do what they have to do," he said as uncertainty over Greece pulled down the BSE index, Sensex, by over 500 points in early trade though it recovered in the afternoon.

Read more: Manic Monday takes Indian stocks market down

India is monitoring developments after the breakdown in talks between Greece and its creditors but does not have a firm plan in place to deal with any significant fallout.

 “This is a dynamic and evolving situation. There is no firm plan that we can access,” Mehrishi said. “Nobody can predict what the exact situation would be.”

"To the extent it affects the euro, there might be some indirect impact on India. If yields on euro bonds go up, then it might impact inflows and outflows from India," he said.

Asked if any Indian company has an exposure in Greece, he said, "I don't know."

"If yields on government securities go on in the US, then it might impact inflows and outflows in India. We really don't know how they (foreign investors) will relocate their portfolio," he added.

Comments

 

Other News

New study tracks heat wave; exposes dangerous trends in big cities

An unprecedented heat wave has been enveloping Indian cities, worsening the urban heat island effect, this summer. A new analysis by Centre for Science and Environment (CSE) says there are far deeper and longer term evidences on the nature of this changing trend that is impacting the biggest cities of the

Phase 6: Voter turnout 59.06% at 7:45 PM

Polling in the sixth phase of General Elections 2024 which commenced across 58 PCs recorded an approximate voter turnout of 59.06% as of 7:45 pm Saturday. In spite of hot weather in certain parts of the country, voters were undeterred in their enthusiasm as they were seen queuing up patient

Banks not adhering to RBI guidelines, finds study

Banks across India are levying inconsistent service charges on basic savings accounts. A study, “Benchmarking Reasonableness of Service Charges by Banks in India”, uncovers and exposes inconsistencies in adherence to RBI mandates by banks. It finds some banks impose charges exceeding reasonable

“Mumbai Infra boom similar to that of Manhattan in 19th C”

Mumbai’s ongoing infrastructure boom – with a new coastal road, Atal Setu, metro lines and much more – creating transport corridors – is comparable to that of Manhattan in New York during 1811-1870, according to BMC commissioner Bhushan Gagrani. The iconic projects being implemented

Global Gandhi: How the Mahatma captured the world’s imagination

Gandhi’s Australia, Australia’s Gandhi By Thomas Weber Orient BlackSwan, 348 pages, Rs 1,800  

Urban apathy in Mumbai, Maharashtra sees 49% voting

Polling in the fifth phase of General Elections 2024 which commenced at 7 am on Monday simultaneously across 49 PCs recorded an approximate voter turnout of 57.47% as of 7:45 pm. Voters came out in large numbers braving hot weather in many parts of the states that went for polls on Monday.

Visionary Talk: Amitabh Gupta, Pune Police Commissioner with Kailashnath Adhikari, MD, Governance Now


Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter