this, Rs5,000 crore will be raised through the sale of
8.07 per cent 2017 12-year paper, while Rs3,000 crore
will be raised through sale of 7.5 per cent 2034 29-year
paper, said a RBI press release.
the auctions will be conducted through multiple price
Up to five per cent of the notified amount of the sale
of the stocks will be allotted to eligible individuals
and institutions as per the scheme for non-competitive
bidding facility in the auction of G-Sec for both auctions.
will be announced on the same day and payment by successful
bidders will be during banking hours on August 12. The
stocks will qualify for the ready forward facility.
and financial sector chiefs stress need for a deeper debt
Hyderabad: Chiefs of banks, stock exchanges, depositories,
and credit rating agencies have stressed the need to deepen
the debt market, especially the corporate debt segment,
in order to effectively address the problems of the financial
institutions and markets over the next 15 years.
a symposium at the Indian School of Business (ISB) on
Friday, the Crisil Managing Director and CEO, R. Ravimohan,
favoured pushing the subordinated debt instruments with
more innovative options. These instruments, with longer
tenures of up to 15 years and flexible repayment options,
were needed to augment funds required for the major infrastructure
projects in the country.
was of the view that the repayment capabilities of the
infrastructure projects would significantly improve with
the availability of long-tenured subordinated debt. Further,
such instruments would enable the entrepreneurs to pay
back the debt at the earliest.
NSE Managing Director and CEO, Mr Ravi Narain, said that
the current household financial savings at less than two
per cent of the total financial market funds were highly
inadequate for healthy growth of financial institutions
and markets in the country.
that the financial markets were currently growing in isolated
boxes, the NSE chief stressed the immediate need for free
and smoother flow of assets from different baskets. Towards
this, he favoured an integrated regulatory framework comprising
regulators of both securities and money markets.
to the Citigroup-India CEO, Sanjay Nayar, the country's
debt market is currently underdeveloped and requires longer
tenure bonds. He also favoured the setting up of a project
guarantee institution towards infrastructure financing
in the country. He said that huge opportunities exist
for such debt instruments in the market thanks to its
growing household savings levels.
UTI Bank Chairman and Managing Director, Dr P. Jayendra
Nayak, advised the Indian financial services system to
improve its technology to aggressively reach out the potential
customers across the country instead of focusing only
on the urban population.
comfortable with the multiple regulatory systems governing
the Indian financial services market, he said that such
a system would lead to the unhealthy practice of regulatory
5 August 2005
sheds seven paise - securities range-bound
Mumbai: The rupee closed lower at 43.51/52 against
the dollar on Thursday, against its Wednesday closing
market: Premiums were range-bound, with the 12-month
premium closing at 0.92 per cent (1 per cent) and 6-month
closing at 0.92 per cent (1.03 per cent).
The bond market traded in a range, gaining about 5
paise towards the end of trade, following Bank of England's
cut in repo rate.
7.55 per cent 5-year 2010 paper closed at Rs103.95 (6.57
per cent YTM), almost unchanged from Wednesday's level
of Rs103.90/95 (6.58 per cent YTM). The 7.27 per cent
8-year 2013 paper closed at Rs102.57 (6.85 per cent YTM),
down from earlier level of Rs102.47/50 (6.87 per cent
YTM). The 7.38 per cent 10-year 2015 benchmark paper was
dealt at Rs102.90/95 (6.97 per cent YTM) against the earlier
level of Rs102.45 (7.03 per cent YTM).
rates: The inter bank rates closed at 4.75-5 per cent
repo auction: The RBI received and accepted 56 bids
amounting to Rs45,880 crore.
market: 281 trades were put through in the range of
4.85-5 per cent, for Rs10,944.70 crore.
4 August 2005
firms up - securities decline
Mumbai: The rupee moved up by eight paise on Wednesday
closing at 43.44, against Tuesday's level of 43.53/54.
market: The 12-month premium was at 1 per cent (0.93
per cent) and the 6-month premium was at 1.03 (0.9 per
In the bond market the 7.27 8-year 2013 paper ended
at Rs102.47/50 (6.87 per cent YTM), lower than Tuesday's
close of Rs102.54 (6.85 per cent YTM). The 7.55 per cent
2010 closed at Rs 103.90/95 (6.58 per cent YTM). The 10-year
benchmark was dealt at Rs102.45 (7.03 per cent YTM) against
Tuesday's level of Rs102.90 (6.97 per cent).
Rates: The inter bank rates closed between 6-6.25
per cent (3-3.05 per cent).
repo auction: The RBI received and accepted 55 bids
amounting to Rs50,610 crore.
market: 247 trades were put through in the range of
4-4.30 per cent, for Rs8,117.80 crore.
T-bills auctions fully subscribed
Mumbai: The auctions of the 91-day and 364-day
Treasury Bills were fully subscribed, according to a press
release from Reserve Bank of India. The notified amount
for both T-bills was Rs2,000 crore.
the 91-day T-bills, RBI received 58 competitive bids,
amounting to Rs6,907.50 crore. Of these, RBI accepted
cut off price was Rs98.69. The cut off yield was 5.32
per cent against 5.49 per cent last time. The partial
allotment percentage was 25.56 per cent from 16 bids.
weighted average price was Rs 98.70.
the 364 day T-bills, RBI received 75 competitive bids,
amounting to Rs5,156 crore. Of these RBI accepted 23 bids.
The cut off price was Rs94.67. The cut off yield was 5.65
per cent against 5.89 per cent last time.
partial allotment percentage was 34.34 per cent of 10
bids. The weighted average price was Rs94.69.
were no non-competitive bids for both T-bills.
3 August 2005
Markets being closely monitored
New Delhi: Finance minister Chidambaram, on Tuesday
assured the Rajya Sabha that the price movements in the
bourses were being closely monitored. His comments come
on the back of a steep rally in the capital markets.
also said 731 foreign institutional investors (FIIs) have
registered with the Securities and Exchange Board of India
till June as against 685 as on March 31. The total number
of FIIs registered with SEBI as on March 31, 2004 stood
at 540, he said.
said the positive FII inflows in the recent past could
be attributed to continued economic reforms, strong economic
fundamentals, improved prudential and regulatory standards
and attractive valuation of companies.
curb malpractices in trading and to ensure integrity of
markets, he said a regular system of weekly surveillance
meetings with major stock exchanges - Bombay Stock Exchange
and the National Stock Exchange - and the depositories
had been put in place.
has been done to provide a confidential platform for exchange
of views on areas of emerging concerns, specific abnormalities
and to consider pre-emptive actions and discuss general
surveillance issues, Chidambaram said.
pick up Bank BeEs as limit in key bank stocks is reached
Mumbai: There has been a sudden inflow of funds
in the Bank BeEs, a passively managed exchange traded
mutual fund scheme tracking the NSE's CNX Banking index,
as FIIs have reached the maximum limit in major banks.
BeEs are traded like any other securities on the NSE.
It closed the day at Rs437 against the previous day's
close of Rs435.75 with 2,028 units changing hands.
July alone, more than Rs1,100 crore has come into this
scheme. The corpus of this scheme increased to Rs1,470.87
crore at the end of July from Rs369.36 crore at the end
of June .
to the large inflows in this scheme, the total corpus
of Benchmark Mutual Fund has increased to Rs1,724.43 crore
in July (Rs619.67 crore), a rise of 178 per cent.
banking index rose 19.87 per cent in July to 4361.15 (3638.40).
sudden interest of FIIs in Bank BEes has happened as the
FIIs reached the maximum 20 per cent limit in key bank
stocks such as State Bank of India, Punjab National Bank,
Oriental Bank of Commerce and Bank of Baroda and fresh
purchase in these stocks cannot be undertaken.
caution limit has been reached in key stocks, ICICI Bank
and Union Bank of India, which are part of the CNX Banking
index, which requires FIIs to take RBI permission in order
to buy their shares. All these stocks constitute more
than 70 per cent of weightage in CNX Banking Index. However,
the remaining six stocks in this list have not reached
the maximum FII limit.
drifts lower, bond prices rise
rupee fell against the dollar on Tuesday ending trade
market: The 12-month premium was at 0.93 per cent
and the 6-month premium was at 0.9 per cent.
In the bond market the 7.27 8-year 2013 paper closed
at Rs102.54 (6.85 per cent YTM) against the earlier level
of Rs102.45 (6.87 per cent). The 10.25 16-year 2021 paper
was dealt at Rs125.40 (7.48 per cent YTM) against the
previous close of Rs126.08. The 7.38 10-year 2025-benchmark
paper was dealt at Rs102.90 (6.97 per cent).
rates: The inter bank rates opened at 5 per cent and
closed between 3-3.05 per cent.
the one-day reverse repo auction, the RBI received and
accepted 55 bids amounting to Rs44,605 crore.
market: 249 trades, put through in the range of 2.26-4.10
per cent for Rs8,056.15 crore, were realised.
pump Rs.3,500 crore into debt in July
the Sensex having touched 7,700, mutual funds have been
bullish on debt, having turned net buyers with over Rs3,500
crore being pumped in, according to Securities and Exchange
Board of India (Sebi) data in July. On the other hand,
till July 28, funds were net buyers of equities to the
tune of only Rs50.13 crore.
is the fourth time in a row in the current fiscal when
funds have pumped in more into debt as compared to equities.
2005 was the best month when funds were net buyers in
debt to the tune of Rs5,034.78 crore, followed by May
when it was Rs4,705.43 crore and now July.
June funds were net sellers on the equity front.
managers say that most of the buying in July has happened
with debt fund schemes (notably short-term, liquid and
floating) investing in CDs (certificate of deposits floated
by banks) to the tune of Rs1,500 crore to Rs2,000 crore.
during the last two days of July, banks like ICICI Bank
and UTI Bank redeemed over Rs1,000 crore of CDs.
Inc's investments in quoted securities rise in value
The value of India Inc's investment in the stock market
has swelled by Rs17,200 crore over the last 16 months.
The book value of corporate sector's investment in quoted
securities was Rs18,808 crore on March 31, 2005. This
included a fresh investment of Rs6,000 crore made during
The market value of this investment was Rs31,500 crore
in March end this year. Riding high on the bull run
in the stock markets, this kitty further appreciated
by Rs4,500 crore taking their market value to Rs36,000
crore by July end. However, most of these investments
are in group companies.
study is based on the market value of quoted investment
of 705 companies on March 31, 2005. The data have been
sourced from Capitaline Plus, the corporate data package
maintained by the capital markets.
Tata Steel is the biggest beneficiary of the stock market
"boom" with its quoted investments of Rs313
crore appreciating by over Rs 1,900 crore. Tata Steel
has investments in group companies such as Tata Motors,
Tata Power, Tata Investment and others.
Bajaj Auto is the second biggest gainer of stock markets
boom with its market value of its quoted investment rising
by over Rs1,470 crore. Bajaj Auto has total investment
of Rs4,292 crore, which is currently valued at Rs5,763
crore. The company has invested Rs394 crore in ICICI Bank
which is now valued at Rs1,236 crore.
Reliance Industries is the third largest gainers in the
list with its investment in group companies appreciating
by Rs1,290 crore. Tata Investment raked in Rs1,156 crore
through its quoted investments of Rs295 crore.
The company has investment in 21 sectors, with major being
banks, cement, chemicals and fertilizers, energy, engineering,
automobile, IT, oil and others.
Tata group flagship Tata Motors gained Rs1,011 crore on
its investment of Rs431 crore, Grasim Industries, flagship
of the AV Birla group, raked in Rs854 crore through its
investments of Rs2,243 crore. Tata Chemicals gained Rs731
crore and Hindalco Rs675 crore.