Rupee declines 10 paise against dollar
Mumbai: The rupee declined by about 10 paise against the dollar demand from banks and major corporate houses. The rupee opened at 40.38/39 and quickly strengthened to 40.35 which was the intra-day high. It then shed its gains due to dollar buying and saw an intra-day low of 40.7450.

The other major currencies were seen appreciating against the dollar on Thursday according to market participants who expect the rupee to appreciate to 40.35 this week. In forwards, the six-month premia closed at 2.09 per cent (1.87 per cent) and the 12-month closed at 2.02 per cent (1.98 per cent).

The sops announced for exporters today have strengthened expectations that the rupee will appreciate further from the current 9-year high level, with some forecasts estimating that the Indian currency will rise to Rs36-Rs39.50 by the end of 2007.

RBI has bought $24.7 billion of foreign currency between November 2006 and April 2007 to prevent a sharp appreciation of the rupee, and raised its overnight lending rate and the portion of cash banks need to deposit with it, to fight inflation.

Call rates: Call rates ruled between 0.4-0.6 per cent today, against the previous close of 0.5-0.6 per cent.

Reverse repo: In the first one-day reverse repo auction, the RBI received 42 bids for Rs58,960 crore and accepted 42 bids for Rs1,994 crore. In the second one-day reverse-repo auction, the central bank received 37 bids for Rs39,705 crore and accepted 37 bids for Rs1,005 crore.

CBLO: The CBLO market saw 285 trades agg regating Rs31,287.65 crore in the 0.01-0.2 per cent range.

Bonds: Bond prices were range bound. Total traded volumes were at Rs4,855 crore (Rs5,790 crore). Dealers said that prices opened lower, tracking the hardening in the US 10-year yield, which moved up to 5.09 per cent, from 5 per cent.

G-secs: The 7.49 per cent-10 year-2017 paper opened at Rs97 (7.93 per cent YTM) and ended at Rs97.11 (7.92 per cent YTM), against the previous close of Rs97. 06 (7.92 per cent YTM).

The 7.99 per cent-10 year-2017 paper opened at Rs97 (7.93 per cent YTM) and ended at Rs97.11 (7.92 per cent YTM), against the previous close of Rs100.73 (7.89 per cent YTM).
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Geojit Fin net up 71 pc
Kochi: Geojit Financial Services net profit rose by 71 per cent to Rs12.1 crore (Rs7.07 crore) for the first quarter of the current fiscal, after making a provision of Rs4.89 crore for taxes. Income for the quarter increased by 29 per cent to Rs41.75 crore (Rs32.35 crore) and profit after tax was up 71 per cent.

Geojit had participated in the offer for sale of shares of BSE and mopped up a post tax income of Rs3.67 crore from this deal.

The income of Geojit Commodities, a subsidiary of Geojit, improved by 17.32 per cent to Rs5.39 crore (Rs4.59 crore). Along with the increase in commodity income, commission from insurance and mutual fund distribution has improved substantially, a
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UTI Bank's $1bn-plus issue to hit market next week
Mumbai: UTI Bank's $1bn-plus public issue is expected to hit the market next week. The bank will raise the money from a mix of preferential issue to promoters and fresh issues to qualified institutional buyers and GDR investors. The bank's capital raising plans were approved by the board, which met here on Thursday to consider the results for the first quarter and also decide on the equity expansion.

The bank will issue another 4.23 crore shares, which would help it raise Rs2,750 crore through the QIP and GDR route. Of this, two-thirds will be offered to QIPs in India and the remaining to GDR investors. The bank is looking to close both issues by July 20. Citi and Goldman Sachs have been appointed as lead managers for both the QIP and GDR issues. Sources said the issue is already generating interest, especially among overseas investors. The roadshows for the issue will kick off on Monday.
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