Rupee gains
The rupee gained by 10 paise on large supply of dollars. The rupee opened at 40.60, touched an intra-day high of 40.44 before closing at 40.54/55, against the previous close of 40.65/66. The RBI intervened at the 40.44 level in the forex market.

Public sector banks were seen buying dollars in the market at those levels of the rupee. Dealers said RBI is expected to intervene actively to restrict the rupee in the range of 40.60-40.70.

The six-month forward premia is at 2.13 per cent (2.07 per cent) and 12-month premia remained unchanged at 2.26 per cent.

Bonds: Bond prices went up by 15 paise and the yields on the 10-year paper fell by about three basis points on profit taking by traders.

The total traded volumes on the order matching system were at Rs8,410 crore (Rs11,105 crore).

G-secs: The yield on the 10-year paper ended at 8.09 per cent on Tuesday against the previo us close of 8.12 per cent.

The 7.49 per cent 10-year-2017 paper opened at Rs95.89 (8.10 per cent YTM) and closed at Rs95.97 (8.09 per cent YTM) against the previous close of Rs95.83 (8.12 per cent YTM). The 6.65 per cent 2009 paper opened at Rs98.50 (7.57 per cent YTM) and closed at Rs98.59 (7.51 per cent YTM).

Call rates: The inter-bank call rates dipped to close at 1-1.25 per cent on Tuesday against the previous close of 6-6.25 per cent.

Reverse repo: The Reserve Bank of India received bids worth Rs80,500 crore through the reverse repo auction under the two sessions of Liquidity Adjustment Facility while it mopped up bids worth Rs2,995 crore. RBI did not receive any bids through the repo window.

In the first one-day reverse repo auction, the central bank received 29 bids for Rs40,995 crore while it accepted Rs1,998 crore. In the second one-day reverse repo auction, RBI received 37 bids for Rs39,505 crore while it accepted bids to the tune of Rs997 crore. There were no repo bids in the first and second one-day auctions.

The CBLO market saw 339 trades aggregating Rs25,704.80 crore in the 0.01-8 per cent range.
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Nabard to set up subsidiary for micro-credit
Hyderabad: The National Bank for Agriculture and Rural Development (Nabard) is launching a non-banking financial company (NBFC) in the micro credit space.

The new subsidiary would be called Nabard Financial Services (Nabfins), and would have an authorised capital of Rs 100 crore and an issued capital of Rs20 crore.

While Nabard will subscribe to the extent of 51 per cent equity, the remaining is expected to be held by banks, and state governments among others.

Officials said the main aim behind the initiative was to create an institution as a model to be emulated by other players in this area.

Headquartered in Bangalore, the company will start its operations initially in Karnataka on a pilot basis and later extend to Andhra Pradesh and Tamil Nadu.
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