PM asks FM to stem Re slide

Following the Prime Ministerial directive, large scale intervention by the Reserve Bank of India (RBI) in the Indian currency markets may ensue if the current slide continues, top finance ministry sources said.

The Prime Minister expressed displeasure on the state of the economy and the general sense of gloom that has come to pervade the currency and stock markets. He has called for effective and demonstrative action on the part of the finance ministry within the next few days. Concrete project specific action was emphasised. Vajpayee summoned Sinha to his 7, Race Course Road residence soon after he reached Delhi after a week-long holiday. The one-and-half hour meeting was attended by principal secretary to the PrimeMinister Brijesh Mishra, finance secretary Montek Singh Ahluwalia and revenue secretary N K Singh.