India's forex reserves rise by $673.4 m

 India’s foreign exchange reserves increased by $673.4 million to $293.93 billion for the week ended Jan 27, Reserve Bank of India data showed.

The forex reserves have risen for the second week after six straight weeks of decline.  They had increased by $731.8 million for the week ended Jan 20 after slumping by $14.25 billion in the previous six weeks.

A strong rally in the Indian equities markets and rebound in the value of rupee on the back of huge inflow of funds from overseas investors have helped in increase in the foreign exchange reserves.

Since the beginning of the year, Indian markets have been riding a firm bull rally. The Sensex has shot up 13.91 per cent till Feb 3. The Nifty too has shot up 15.17 per cent or 701.55 points in little over a month. Foreign fund flows have also led to a strong recovery in the value of the rupee, helping alleviate worries of investors. The rupee closed on Friday at a 3-month high at 48.68 against the dollar.

Overseas inflows have also played a big role in this.