As India’s forex reserves cross $600 bln, liquidity gush to fuel equities

As Indias forex reserves cross the $600 billion-mark, there are indications that the ample liquidity, both globally and in the domestic space will continue to drive the Indian stock markets.

“The success of these efforts is reflected in the stability and orderliness in market conditions and in the exchange rate in spite of large global spillovers. In the process, strength is imparted to the country’s balance sheet by the accumulation of reserves,” RBI Governor Shaktikanta Das added.

Experts say foreign exchange reserves have topped $600 billion and more than $105 billion this year alone indicating huge liquidity in the system.

The average daily turnover in NSE is about Rs 79,000 crore in May 2021 as against Rs 65,000 crore in 2020 and only Rs 36,000 crore in 2019.