The News International Team
10:20am China economy: China will control economic risks as the country pushes reforms to make the yuan convertible on the capital account, the foreign exchange regulator said today.
“It’s viable for China to steadily achieve capital account convertibility, but controlling risks remains the top priority,” Wang Yungui, head of policy and regulations for the State Administration of Foreign Exchange (SAFE) told a news conference.
Wang said China has “the last one kilometre” to go before achieving full yuan convertibility, but he did not elaborate.
China has pledged to move towards making the yuan convertible on the capital account, amid hopes that the International Monetary Fund could include the yuan in its special drawing rights (SDR) basket during a five-year review due to be conducted this year.
Central bank governor Zhou Xiaochuan said on Sunday that China will take more steps this year to smooth the way for citizens to invest in overseas financial markets, and reform the Qualified Foreign Institutional Investors (QFII) scheme, which is “not convenient and flexible enough”.
10:00am Market Check
The market remained under pressure ahead of expiry of March derivative contracts. Banking & financials, healthcare and select technology stocks dragged.
The Sensex dropped 201.98 points to 27909.85 and the Nifty shed 56.30 points to 8474.50. The broader markets too were down; the BSE Midcap and Smallcap indices declined 0.4 percent each.
Nearly two shares declined for every share advancing on the Bombay Stock Exchange.
HDFC topped the selling list, falling 3.5 percent followed by ICICI Bank, Tata Motors, SBI, Wipro, ONGC, Dr Reddy’s Labs, Sesa Sterlite and Coal India with over a percent loss.
However, Bharti Airtel gained 1.8 percent post closure of spectrum auction. BHEL and GAIL climbed over a percent.