Equity markets declined with Sensex declining from closing of 20,062 on May 22, 2013 to 18,620 on August 30, 2013. Portfolio capital inflows which were buoyant till the third week of May 2013 began retreating as US yield hardened and yield spread narrowed significantly. Policy measures taken to curb volatilities 17.
Reserve Bank had stepped in to curb excessive volatility in the foreign exchange market and responded by increasing the short term interest rates and by tightening the Rupee liquidity in the system. Special swap window was opened for public sector oil marketing companies for meeting crude oil related dollar demand.