Rupee
gains
Mumbai: The rupee gained by 25 paise against the dollar
owing to strong inflows into market. The domestic currency
opened at 40.83/85. Strong inflows coupled with the absence
of Reserve Bank of India in the market helped appreciate
the rupee which closed at 40.61 up from the previous day's
close of 40.86. Market participants feel that the home
currency would appreciate further to 40.50 this week.
In
forwards, the six-month premia closed at 2.62 per cent
(2.07 per cent) while the 12-month ended at 2.74 per cent
(2.48 per cent).
Bonds:
Bond prices rose by around 20 paise on reports of
a possible drop in inflation. Total traded volumes on
the order-matching system were Rs4,685 crore (Rs2,325
crore). Inflation for the week ended May 12 was at 5.27
per cent. The surplus cash in the system kept traders
cautious.
G-secs:
The 8.07 per cent-10 year-2017 paper opened at
Rs99.80 (8.09 per cent YTM) and closed at Rs99.93 (8.08
per cent YTM), against the previous close of Rs99.78 (8.10
per cent YTM).
The
7.38 per cent- 7 year-2015 paper opened at Rs95.50
(8.13 per cent YTM) and closed at Rs95.79 (8.09 per cent
YTM), against the previous close Rs95.55 (8.13 per cent
YTM).
Call
rates: The inter-bank call rates dipped to a 10-year
low of 0.50 - 0.75 per cent on Thursday, on surplus liquidity
lower than Wednesday's 1 - 1.25 per cent.
Reverse
repo: In the first one - day reverse repo auction,
RBI received 32 bids for Rs37,020 crore while it accepted
Rs1,995 crore. In the second one - day reverse repo auction,
the apex bank received 35 bids for Rs35,270 crore while
it accepted Rs997 crore. There were no repo bids in the
first and second one - day auctions.
The
CBLO market saw 339 trades aggregating Rs29,992.10 crore
in the 0.10 per cent - 0.50 per cent ran.
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PFRDA
shortlists four players for managing pension funds
New Delhi: Four players of Life Insurance Corporation
of India, State Bank of India, UTI AMC and IDBI Capital
have been shortlisted by the Pension Fund Regulatory and
Development Authority (PFRDA) to mange the pension
funds under the new pension scheme (NPS). Originally,
seven players submitted expressions of interest (EoI)
for the role of pension fund managers (PFMs).
The
PFRDA had stipulated that only financial service providers
in which Government had at least 51 per cent stake and
managed assets worth Rs10,000 crore were eligible to submit
EoIs. Those shortlisted will now be issued Request for
Proposals on June 11 and will have to respond within 2-3
weeks. Based on the evaluation, the PFRDA would finally
identify 2-3 PFMs. The whole process is expected to be
completed by July 20.
The
fund managers will offer alternative products to employees,
including risk-free options, under which all funds would
be invested in government securities, and share-market
linked products with variable returns as well.
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PTC
in pact with IIFC
New Delhi: PTC India has signed a five-year memorandum
of understanding with India Infrastructure Finance Company
Ltd (IIFC) to promote the development and construction
of power projects, including thermal, hydro and other
sources. As per the MoU, IIFC will undertake the due diligence
process and appraisal for financing of power projects
where PTC has signed power purchase agreement with project
developers.
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ICICI
Lombard at top place in premium growth
Bangalore: ICICI Lombard General Insurance
Corporation has grabbed the second spot in insurance premiums
growth displacing three public sector companies. According
to figures released by the Insurance Regulatory and Development
Authority (IRDA) on Thursday, ICICI Lombard earned the
second largest premium of Rs448.65 crore for April but
was at top place in terms of premium growth of 35 per
cent over the corresponding period of the last financial
year. Public sector New India Assurance remained on top
with a gross premium of Rs650.82 crore for the same period
but grew by only 8.2 per cent over the corresponding period
of the last financial year. Oriental Insurance Company
Ltd remains at the third spot with gross premiums of Rs413.50
crore. Oriental's growth has remained flat during the
period.
In
the first month of financial year 2007-08, private sector
insurers grew 37.34 per cent to Rs1,272.22 crore over
April 2006. In the process, the market shares have further
undergone a change. Private sector has grabbed a market
share of 40 per cent in the non-life insurance business,
from 34 per cent in the financial year 2006-07. Public
sector market share is now only 60 per cent.
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BNP
Paribas picks 50 pc stake in SREI Infra arm
Mumbai: French bank BNP Paribas has bought a 50 pc
stake in the equipment finance arm of SREI Infrastructure
Finance for Rs775 crore. SREI will demerge its equipment
finance business and BNP Paribas Lease Group (BPLG), the
leasing arm of BNP, will pick up equity in the new entity,
SREI Infrastructure Development Finance. The new company
will also hold the share capital of SREI Insurance Services,
and will undertake other asset-based financing.
The
net worth of the new JV after the subscription by BPLG
will be Rs800 crore.
Underlying
the deal, there are call options for BPLG and put option
for SREI which can be exercised by the JV partners at
any time after April 1, 2030 under specific situations.
These are a possible default by SREI or the promoters
or BPLG, dilution below certain specified levels, change
of control of SREI, and the promoters ceasing to be the
MD of the JV company.
The
transaction was done at three times the book value of
SREI. The current book value of SREI is at Rs42 a share.
The present market cap of SREI is Rs783 crore. The scrip
rose 19.9 pc to Rs71.80 on Thursday.
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