RBI does not target any specific Rupee level, focuses on curbing volatility, says Governor Sanjay Malhotra
Bank of India is in focus.
· Economic Times Markets
Reserve Bank of India (RBI) Governor Sanjay Malhotra on Friday said the central bank does not target any specific exchange rate or level for the rupee against the US dollar, stressing that its primary objective is to ensure orderly conditions in the foreign exchange market and prevent excessive volatility.
The analysis
Against that, the stock is -3.8% on the day at ₹131.00, and has returned -5.4% over three months. It sits 26% below its 52-week high, which means a good deal of bad news was already in the price. The banks sector has moved -4.2% over the same period, so Bank of India is running 1.2 points behind its peers.
For Bank of India, the question is how much of this is already reflected in the price and how much re-rates the banks peer set alongside it.
Why it matters
- With RBI involved, this carries a regulatory dimension that can outlast the immediate market reaction.
Market context
- The company directly in focus is BANKINDIA.
- Sector exposure: Banks.
In this story
Related coverage
Union Bank Of India among 4 stocks showing RSI trending up
Banking liquidity surplus shrinks to Rs 541 crore as cash crunch increases
Rupee declines first time in eight sessions as Brent oil prices rise above $112
Indian bonds steady after RBI minutes signal more rate hikes
Rupee snaps eight-day rally as oil climbs to highest since May