Greek debt crisis to have limited impact on India: Rajan

 India will see limited impact of the debt crisis in Greece as it has little direct exposure to the European nation, RBI Governor Raghuram Rajan said Thursday.

"Greece is an evolving situation. The direct exposure to Greece is very very limited for India, both financial and trade," Rajan said after the Reserve Bank's board meeting here.

"...The direct impact is limited. Our sense is, after the initial burst of volatility, which might be (if) developments turned adverse then investors will start differentiating," he said.

Investors will see that India story actually continues to be a good one, he said.

On the indirect fall out of the Greek crisis, Rajan said there could be some impact on exchange rate depending on how euro will react to any untoward developments in Greece leading to a risk of sentiment amongst global investors.

India not only have good macro policies in place, but growth prospects are quite healthy relative to rest of the world.

"Plus, the buffers we have are quite reasonable, including our foreign exchange buffers...And I am fairly confident the next phase after initial volatility will be a reassessment which will be in our favour," he said. 

Sensex on a firmer footing, extends gains for 3rd straight session

 The benchmark Sensex rose over 95 points in early trade Thursday, extending gains for the third straight session, on sustained buying by funds and investors.

A stronger global market driven by hopes of a Greece deal kept up the pace.

The 30-share index, which had gained 375.72 points in the past two sessions, gained another 95.09 points, or 0.33 percent, at 28,115.96.

All the sectoral indices led by FMCG, healthcare and oil & gas were in the positive terrain.

On similar lines, the 50-share Nifty moved up 24.45 points, or 0.28 percent, to 8,477.50.

Brokers said continued buying by participants, backed up by a solid trend at other Asian markets on hopes of an agreement over Greece, and overnight gains in US markets on strong economic data lifted trading sentiment.

Besides, revival of buying by foreign funds after remaining sellers for several sessions supported the upside, they said.

Among other Asian markets, Hong Kong's Hang Seng index rose 0.41 percent while Japan's Nikkei was trading 1.16 percent higher in early trade.

The US Dow Jones Industrial Average ended 0.79 percent higher in yesterday's trade.