Rupee declines
Mumbai: The rupee declined further to 46.17/18 due to the continued demand for oil from domestic oil companies. The domestic currency opened at a gap, 46.18/20, and touched an intra-day low of 46.25 to close at 46.17/18. On Monday, the rupee closed at 46.13/14.

Forwards: In the forward premia market, the six-month closed at 1.09 per cent (1.10 per cent) and the 12-month at 1.20 per cent (1.21 per cent).

Bonds: Bond prices fell as a reaction to the higher cut-off price and lower yield for the Rs7,000 crore government securities auction. RBI accepted bids amounting to Rs1,700 crore. The yield of the auctioned 7.59 per cent-10 year-2016 benchmark paper hardened by 10 basis points to 7.37 per cent since Monday's closing.

G-Secs: The 7.59 per cent - 10 year-2016 paper opened at Rs95.30 (8.3 per cent YTM) and closed at Rs94.79 (8.38 per cent YTM), down from Monday's close at Rs95.4 (8.28 per cent YTM).

The 7.37 per cent-8 year-2014 paper opened at Rs95.40 (8.18 per cent YTM) and closed at Rs94.90 (8.27 per cent YTM).
Call rates: Call rates remained unchanged between 5.75 and 5.85 per cent.

Reverse repo: In the first one-day reverse repo auction under LAF, Reserve Bank of India received and accepted 34 bids amounting to Rs35,465 crore and in the second one-day reverse repo auction, 30 bids for Rs18,840 crore. There were no repo bids.

CBLO: The CBLO market saw 290 trades aggregating to Rs19,338.90 crore in the 5.45 -5.80 per cent range.
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India most preferred destinations of private banks: KPMG report
New Delhi: Global consultancy firm KPMG in a report has said India is emerging as one of the most preferred private banking destinations when the global private banking and wealth management industry is witnessing a boom in mergers and acquisitions (M&A) activity.

KPMG in its report titled 'Hungry for more - Acquisition appetite and strategy in the global private banking and wealth management industry', said with robust and liquid financial markets enabling exits on a timely basis to realise gains, India is a good resource deployment avenue.

"India's economy is growing at 8 per cent per annum and is going through a transformation to the next level of maturity. This enables double digit returns on most asset classes, which is not so in a majority of countries, making India a preferred private banking destination," the report said.
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IDFC may acquire stake in L&T's road project
New Delhi: The Infrastructure Development Finance Company (IDFC) may acquire a 26 per cent stake in a special purpose vehicle (SPV) set up by Larsen and Toubro (L&T) for the latter's Rs1,250-crore highway-widening project on the Vadodara-Bharuch section.

L&T will widen the existing four-lane highway to six lanes, with amenities and support infrastructure. The project has a 15-year concession period, including a construction period of 30 months. The project has been domiciled in a special purpose company called L&T Vadodara Bharuch Tollways Ltd, formed exclusively for the project. The concession agreement for the project would be signed between NHAI and L&T in the next few days.
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BoI to issue bonds
Mumbai: Bank of India plans to raise Rs600 crore through the placement of Tier-II capital through issue of unsecured, redeemable, non-convertible, subordinated bonds (Series X) and Rs500 crore through the placement of upper Tier II capital by issue of bonds with a greenshoe option of Rs500 crore to retain over subscription. The bank plans to augment the Tier II capital for strengthening the capital adequacy ratio and for improving the long-term resources of the bank. Bank of India scrip closed at Rs99.55 on Tuesday compared to the previous close of Rs98.25.
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Fortis signs agreement with Federal Bank, IDBI bank
Brussels: Belgian-Dutch financial services group Fortis has entered into an agreement with Indian banks Federal Bank and Industrial Development Bank of India to form life a insurance company in India. IDBI will initially own 48 percent in the Indian life insurer, while Federal Bank and Fortis will each have 26 percent.
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