Financials haul Indian benchmarks higher after central bank's liquidity boost
Business
Financials haul Indian benchmarks higher after central bank's liquidity boost
(Reuters) - India's benchmark indexes rose on Tuesday, led by gains in financials after the Reserve Bank of India announced a slew of measures to boost liquidity in the banking system, raising hopes of an interest rate cut in February.
The central bank's measures to inject liquidity include bond purchases and dollar/rupee swaps, which analysts and traders said could be a precursor to a rate cut next month.
The RBI's measures lifted financials higher "as easing liquidity will support credit growth and earnings of banks and non-bank lenders," said Narendra Solanki, head of fundamental research of investment services at Anand Rathi Shares and Stock Brokers.
Among earnings-related moves on the day, drugmaker Cipla rose about 2% after reporting third-quarter profit above estimates and consumer goods company Emami gained 3.5% after posting a rise in December quarter profit.
