CII urges RBI to abstain from hiking int rates

New Delhi, Oct 30: The Confederation of Indian Industry (CII) has urged the RBI to abstain from hiking the interest rate in its review of monetary policy tomorrow, especially in view of the Sensex having achieved 13000 mark milestone today.

''There is no need to provide any extra incentive to attract larger FIIs at this point of time. With current rate of interest, RBI may allow the domestic investors to continue borrowing from the market at cheaper rate and undertaking larger investment, which would help Sensex to cross another milestone soon,'' the Chamber said.

Welcoming the BSE benchmark Sensex crossing 13000 points in a single day for the first time in history, CII attributed this to impressive corporate performance and the sustained economic growth.

''This new milestone reflects the continuing improvements in the fundamentals of the economy and the impressive corporate results that we are witnessing in the second quarter,'' said CII President R Seshasayee in a statement here.

The Chamber said that what it found encouraging was the good performance at the micro and macro levels, boosting confidence, especially in large caps.

FII inflows have also contributed to the cause. Yield hungry foreign institutional investors continue to chase equities in India, it noted.

UNI

Related Stories