Apr 21, 2014
Money Markets:
  • The truncated week ending on 17th April 14, witnessed a drop in average daily net borrowing under LAF at Rs.14,414 cr as compared to previous week’s average of Rs.17,646 cr. The average MSF borrowing stood at Rs.1,043 cr. Total liquidity shortfall at Rs.15,457 cr. is within the comfort zone.
  • Money market rates remained elevated during the week; with call rates ending at 8.15% as against 8.15% in the previous week. The CBLO rates ended at 7.65%, from previous week’s 8.10%.
G-Sec Market:
  • RBI conducted the biggest ever weekly bond auction as it sold securities 8.35% GS 2022, 8.24% GS 2027, 9.20% GS 2030 and 9.23% GS 2043 for a total notified amount of Rs.20,000 cr – devolvement was avoided on account of participation of institutions like LIC & EPFO. The cut-offs for the securities came in at 9.16%, 9.31%, 9.26% and 9.30% respectively. The bid-cover ratio was at 3.08 as compared to 2.43 in the previous auction. 
  • The benchmark 10-yr security 8.83% GS 2023 closed at 8.85% 9 bps lower w-o-w. The g-sec market continued to recover despite the weak data as the WPI and CPI printed a higher number. The G-sec market was a little cautious ahead of the record auction during the week, however the huge investor demand and the bullish cut-offs led to a further rally in the g-sec market.
  • The OIS curve witnessed receiving on the longer end. The 5-yr OIS closed at 8.47%, 5 bps lower from previous week levels; while the 1-yr OIS closed at 8.59%; 2 bps lower from previous week levels. The 1 – 5 yr spread narrowed on a weekly basis by 3 bps to end at -12 bps levels. In the absence of further cues the OIS curve is likely to trade range-bound.

Corporate Bonds
  • Mirroring the sentiment in the underlying g-sec market the corporate debt too witnessed investor demand. The 10-yr AAA bond traded at a yield of 9.65%, 5 bps lower from its previous week closing levels of 9.70%. The yield on 1-yr AAA bond ended at 9.30%, 5 bps lower from its previous week levels of 9.35%. 
  • In the primary corporate debt market: IOT Infrastructure and Energy issued 9.84% 13-month paper, 9.84% 7-yr debt paper, 10.80% 14.5 yrs paper and 10.63% 14-5 yrs paper to raise aggregate Rs.3,000 cr. Shriram City Union Finance issued 11.00% 2-yr, 11.50% 3-yr and 11.75% 5-yr NCDs to raise Rs.100 cr.
Macro Indicators
  • RBI has accepted the recommendation of the committee on financial benchmarks and has advised FIMMDA and FEDAI to implement the recommendations for the rupee interest rate and foreign exchange benchmark to avoid any possibility of manipulation.
  • RBI has advised banks to take into account available incentives and schemes while extending credit to micro and small enterprises.
  • RBI has notified that Limited Liability Partnership (LLP) firms are henceforth eligible for investment under the FDI.
  • RBI is expected to jointly issue the notification of easing of regulations in the exchange traded currency derivatives segment and is also likely to allow the participation of FIIs in the segment.
  • Ratings agency CRISIL said that it expects Indian economy to grow at an average rate of 6% in the period 2014-15 to 2018-19 which will be the ruling period for the new Government.
  • India’s CPI for Mar 2014 increased to 8.31% from 8.03% in the previous month.
  • Monthly WPI inflation stood at 5.70% in March 2014, as against 4.68% in February 2014.
Global Markets
  • Fed Chief Janet Yellen assured that the Fed’s monetary policy will remain accommodative and the rate hike could be as far as two years from now. Yellen expects the US inflation to remain muted till then.
  • US CPI numbers and Core CPI excluding food and energy component which were released yesterday both surpassed expectations to mark levels of 0.2% in Mar 2014 against 0.1% reported earlier. Data insights indicated that surge in above release was on account of rise in food and gasoline prices.
  • Retail sales in US grew by 1.1% in March as compared to previous month – the fastest growth in the last 18 months.
  • The German Zew Sentiment declined to 43.2 in Apr 2014 from 46.6 in Mar 2014, the indicator predicts the economic development six months prior for the German economy.
  • The UK unemployment rate fell to a 5-year low at 6.90% in Feb 2014 from 7.20% in Jan 2014.
  • China’s GDP grew by 7.40% in Jan-Mar 2014 qtr as against a previous qtr growth of 7.70%. The growth has dropped to the lowest level in six qtrs but was higher than market expectations of 7.30%.
  • Japan’s trade deficit widened higher than forecast as is clocked JPY 1.45 tn ($14.1 bn) in Mar 2014 higher than market estimates of JPY 1.1 tn and previous month number of JPY 802.5 bn.
  • Tensions in Ukraine escalated as the Ukraine Ministry accused Russia of perpetrating violence and planning an invasion in the region. Meantime several fund managers have warned US on repercussions from imposing economic sanctions on Russia.
Archives

Apr 21, 2014

Apr 14, 2014

Apr 07, 2014

Apr 01, 2014

Mar 24, 2014

Mar 18, 2014

Mar 10, 2014

Mar 03, 2014

Feb 24, 2014

Feb 17, 2014

Feb 10, 2014

Feb 03, 2014

Jan 27, 2014

Jan 20, 2014

Jan 13, 2014

Jan 06, 2014

Dec 30, 2013

Dec 23, 2013

Dec 16, 2013

Dec 09, 2013

Dec 02, 2013

Nov 25, 2013

Nov 18, 2013

Nov 11, 2013

Nov 05, 2013

Oct 28, 2013

Oct 21, 2013

Oct 14, 2013

Oct 07, 2013

Sep 30, 2013

Sep 23, 2013

Sep 16, 2013

Sep 10, 2013

Sep 02, 2013

Aug 26, 2013

Aug 19, 2013

Aug 12, 2013

Aug 05, 2013

Jul 29, 2013

Jul 22, 2013

Jul 15, 2013

Jul 08, 2013

Jul 01, 2013

Jun 24, 2013

Jun 17, 2013

Jun 10, 2013

Jun 03, 2013

May 27, 2013

May 20, 2013

May 13, 2013

May 06, 2013

Apr 29, 2013

Apr 22, 2013

Apr 15, 2013

Apr 08, 2013

Apr 01, 2013

Mar 25, 2013

Mar 18, 2013

Mar 11, 2013

Mar 04, 2013

Feb 25, 2013

Feb 18, 2013

Feb 11, 2013

Feb 04, 2013

Jan 28, 2013

Jan 21, 2013

Jan 14, 2013

Jan 07, 2013

Dec 31, 2012

Dec 24, 2012

Dec 17, 2012

Dec 10, 2012

Dec 03, 2012

Nov 26, 2012

Nov 19, 2012

Nov 12, 2012

Nov 05, 2012

Oct 29, 2012

Oct 22, 2012

Oct 22, 2012

Oct 15, 2012

Oct 15, 2012

Oct 09, 2012

Oct 03, 2012

Sep 24, 2012

Sep 17, 2012

Sep 10, 2012

Sep 03, 2012

Aug 27, 2012

Aug 21, 2012

Aug 14, 2012

Aug 06, 2012

Jul 30, 2012

Jul 23, 2012

Jul 16, 2012

Jul 09, 2012

Jul 02, 2012

Jun 18, 2012

Jun 18, 2012

Jun 11, 2012

Jun 04, 2012

May 28, 2012

May 21, 2012

May 15, 2012

May 08, 2012

May 02, 2012

Apr 23, 2012

Apr 16, 2012

Mar 30, 2012

Mar 19, 2012

Mar 12, 2012

Mar 05, 2012

Feb 28, 2012

Feb 22, 2012

Feb 13, 2012

Feb 07, 2012

Jan 30, 2012

Jan 23, 2012

Jan 16, 2012

Jan 09, 2012

Jan 02, 2012

Dec 19, 2011

Dec 12, 2011

Dec 07, 2011

Nov 28, 2011

Nov 28, 2011

Nov 22, 2011

Nov 15, 2011

Nov 07, 2011

Oct 31, 2011

Oct 24, 2011

Oct 10, 2011

Oct 03, 2011

Sep 26, 2011

Sep 19, 2011

Sep 13, 2011

Sep 05, 2011

Aug 29, 2011

Aug 23, 2011

Aug 16, 2011

Aug 09, 2011

Aug 02, 2011

Jul 25, 2011

Jul 11, 2011

Jul 04, 2011

Jun 27, 2011

Jun 20, 2011

Jun 13, 2011

Jun 06, 2011

May 30, 2011

May 23, 2011

May 23, 2011

May 16, 2011

May 10, 2011

May 02, 2011

Apr 25, 2011

Apr 18, 2011

Apr 11, 2011

Apr 04, 2011

Mar 28, 2011

Mar 21, 2011

Mar 14, 2011

Mar 07, 2011

Feb 28, 2011

Feb 21, 2011

Feb 14, 2011

Feb 07, 2011

Jan 31, 2011

Jan 24, 2011

Jan 17, 2011

Jan 10, 2011

Jan 04, 2011

Dec 27, 2010

Dec 20, 2010

Dec 06, 2010

Nov 29, 2010

Nov 22, 2010

Nov 15, 2010

Nov 01, 2010

Oct 25, 2010

Oct 18, 2010

Oct 11, 2010

Oct 04, 2010

Sep 27, 2010

Sep 20, 2010

Sep 13, 2010

Sep 06, 2010

Aug 30, 2010

Aug 23, 2010

Aug 23, 2010

Aug 16, 2010

Aug 09, 2010

Aug 03, 2010

Jul 26, 2010

Jul 19, 2010

Jul 12, 2010

Jul 05, 2010

Jun 29, 2010

Jun 21, 2010

Jun 14, 2010

Jun 07, 2010

May 31, 2010

May 24, 2010

May 17, 2010

May 07, 2010

May 04, 2010

May 04, 2010

Apr 26, 2010

Apr 16, 2010

Apr 09, 2010

Mar 26, 2010

Mar 19, 2010

Mar 12, 2010

Mar 05, 2010

Feb 26, 2010

Feb 19, 2010

Feb 11, 2010

Feb 05, 2010

Jan 29, 2010

Jan 22, 2010

Jan 15, 2010

Jan 08, 2010

Jan 01, 2010

Dec 18, 2009

Dec 11, 2009

Dec 04, 2009

Nov 27, 2009

Nov 20, 2009

Nov 16, 2009


Small image Click on image to enlarge