Stock markets could come under severe selling pressure as worried investors look to save their capital in the wake of Franklin Templeton Mutual Fund’s Thursday announcement that it will close six of its debt schemes due to liquidity issues.
A 3.2% erosion in SGX Nifty this morning, as compared to its previous close, also points to a weak opening. After the Franklin disclosure, Mint reported that the Reserve Bank of India (RBI) could step in to provide a special liquidity window to help mutual funds facing redemption pressure.
That could calm the jitters, some experts said, even as there’s huge nervousness in the markets after the Franklin issue. Asia equities are down after Wall Street pared early gains as optimism over a rebound in oil