Indian markets to stabilise in next few days, says Pranab

New Delhi, Aug 10 (PTI) Encouraged by about 400 points
upsurge in the BSE sensex in the opening trade, Indian Finance
Minister Pranab Mukherjee on Wednesday exuded confidence that
markets will stabilise in the next few days.
He also said the government and the Reserve Bank will
work in close cooperation to bring stability besides ensuring
adequate liquidity in the forex market.
"One thing is certain that confidence has come back in
respect of Indian markets ... There has been a slow recovery
and in couple of days it will be stable", Mukherjee told
reporters here.
Snapping its six-session losing streak, the Bombay Stock
Exchange benchmark Sensex made a strong comeback by rising
nearly 400 points in opening trade, supported by a rebound on
other Asian bourses.
The 30-share BSE barometer, which has lost nearly 1,455
points in the past six sessions and had hit a 14-month low,
rose by 398.55 points to 17,256.46 as stocks moved into
positive terrain with gains of up to 2.96 per cent in morning
trade.
On steps to deal with the financial crisis triggered
by downgrading of the US sovereign rating by Standard and
Poor's, Mukherjee said, "both RBI and Ministry of Finance are
working together in close cooperation to ensure that whatever
steps are needed,... (are) taken. There will be no dearth of
liquidity of forex".
As regards the fallout of the US Federal Reserve's
decision to keep the interest rates at near zero level for two
year, the Minister said, "it will have some impact" on the
Indian markets which are in the process of stabilisation after
witnessing huge decline.