RBI's cash infusion not enough to cheer market, arrest Rupee's slide

The nation's foreign-exchange reserves have declined by almost $6 billion in the last two weeks, a sign the RBI intervened to support the rupee

Bond investors are finding out that the Reserve Bank of India isn’t as generous as they thought.
 

Sovereign debt declined for a third day Friday, wiping out gains fueled by the RBI’s May 4 decision to inject cash by buying bonds. The measure has failed to revive demand for debt as it simply restores the cash drained by the authority to prop up a sliding rupee, traders say.
 

“The RBI could do more OMO purchases because of the run on the rupee,” said Vijay Sharma, executive vice president for fixed-income at PNB Gilts. The liquidity infusion gets “neutralized” when the