The domestic stock exchanges have fallen for the four consecutive month after the Indian rupee touched an all time low and uncertainties continues in the debt-ridden eurozone.
India's BSE benchmark Sensex on Friday dipped below the 16,000 points after losing 232 points while National Stock Exchange index Nifty fell below the crucial 4,800 points level. The markets fell on weak global economic trends and the indications that RBI is unlikely to reduce rates due to inflationary pressures.
India's central bank, the Reserve Bank of India (RBI) is not likely to reduce its key interest rates in the country due to surprising high inflation number for April. C Rangarajan, the chairman of the Prime Minister's Economic Advisory Council said that the high inflation numbers for the month of April has made it very difficult for the central bank to consider reducing its key interest rates. High inflationary pressures made results in a narrow scope of action from the RBI.
The situation was made worse due to the political uncertainties in Greece and a downgrade of a series of Spanish banks. The continuing debt crisis has been made worse due to the possibility of an exit of Greece from the eurozone.
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