Market Update

Market Update:‎
Sgx Nifty +55 pts
Dow +103 pts ,Nsdq +39.72  pts , S&P +10.25 pts ,Bovespa -153  pts, Ftse -37 pts , Dax -92 pts, Cac -68 pts, Nikkei  -9 pts , now, Crude @ $44.82brl (-0.20), Brent @ $48.23 (+0.08) , Gold @ $1104.60 (+1.30), Silver @ $14.6
51(+0.05), Euro @ $1.1344, JPY @ $120.7100, INR @ $66.5412
 ‎

Market Update

Market Update:
Sgx Nifty +5 pts
Dow -10.22 pts ,Nsdq +34.40 pts , S&P +6.52 pts ,Bovespa +228 pts, Ftse +65 pts , Dax +180 pts, Cac +84 pts, Nikkei  +164 pts , now, Crude @ $45.22/brl (+0.07), Brent @ $49.74 (+0.15) , Gold @ $1083.90 (-1.70), Silver @ $14.56 (+0.01), Euro @ $1.0915, JPY @ $124.8200, INR @ $63.7550

Bond yields trade range bound on Tuesday

Bond yields are trading range bound on Tuesday in the absence of fresh triggers. High global oil prices which stoke inflation fears might send the yields higher, but hopes for an improvement in cash supply and the lack of debt sale until April would limit the gains of bond yields.

The yield on the most-traded 8.08%-2022 tad low at 8.12%, from its previous close of 8.13 % in the absence of fresh triggers, with price rises seen limited due to more monetary tightening in the offing

The yields on less liquid 10-year benchmark, the 7.80%-2020 bond yield was at 8.00% from its previous close of 8.01%.

The benchmark five-year interest rate swap was at 8.03% higher from its previous close of 8.06% on Monday.

Three State Governments have announced Auction of State Development Loans 2021 for Rs 218.650 crore on March 22, 2011.

The Reserve Bank of India has announced the auction of 91-day and 364- day Government of India Treasury Bills for notified amount of Rs 5,000 crore and Rs 3,000 crore respectively. The auction will be conducted on March 23, 2011 using 'Multiple Price Auction' method.

Call rates steadily high on Tuesday

The Inter-bank call money rates were steady at 7.70/75% from its previous close as tightness in liquidity persisted following large advance tax outflows, while demand for fund remained strong even in the second week of the reporting fortnight. Banks via Liquidity Adjustment Facility (LAF) borrowed Rs 55,400 crore through repo window on March 21, 2011. While banks via Second Liquidity Adjustment Facility (LAF) borrowed Rs 23,490 crore through repo window and parked Rs 55 crore via reverse repo window on the same day.

The overnight borrowing rates has touched a high of 7.70% and a low of 7.80%, so far.

According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in the call money market was 7.71% on Monday and total volume stood at Rs 12,545 crore on the same day.

As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was 6.71% on Monday and total volume stood at Rs 55,609 crore on the same day. 

Rupee picks up pace on Tuesday; surging oil prices weigh

Rupee strengthened on Tuesday supported by gains in the stock market and dollar weakness against other currencies. However, surging oil prices have maintained lid on further appreciation of the local unit, while, even demand for dollars by oil importers may play spoilsport for the rupee's gains during the day. Brent crude futures were supported near $115 on Tuesday by supply concerns triggered by the spreading unrest in the Middle East, while uncertainty about demand from the world's No. 3 consumer Japan capped gains.
Meanwhile, dealers are also turning more optimistic about the rupee's outlook in the near term on expectations of robust dollar inflows with companies getting funds via ECBs , and remittance in this quarter due to the Middle-East crisis.
The partially convertible Rupee is currently trading at Rs 44.96/97, stronger by 5 paise from its previous close of 45.01/02 on Monday. It touched a high of 45.00 and a low of 44.96 respectively. The Reserve Bank of India's Reference Rate for the US dollar stood at Rs 45.05 and for Euro it stood at Rs 63.81 on March 21, 2011. While, the RBI's reference rate for the Yen stood at Rs 55.65 and the reference rate for the Great Britain Pound (GBP) stood at 73.0508 on March 21, 2011. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date	1US$	1GBP
March 21,2011	45.05	73.0508
March 18,2011	45.09	72.8226

                                                       RBI-reference rate

Call rates surge in the second week of the reporting cycle; tax outflows skew liquidity conditions

The Inter-bank call money rates were at 7.55/60% almost steady compared to its previous close of 7.50 /60% on strong demand at the first day of second week of the reporting fortnight. The call rates are well above the repo level since tax outflows have caused cash crunch leading banks to borrow more in order to cover their mandated requirements. The call rates closed at 7.50/60 in an illiquid market on Saturday.

Banks via Liquidity Adjustment Facility (LAF) borrowed Rs 87,095 crore through repo window on March 16, 2011. While banks via Second Liquidity Adjustment Facility (LAF) borrowed Rs 53,375 crore through repo window and parked Rs 300 crore via reverse repo window on the same day.

The overnight borrowing rates has touched a high of 7.75% and a low of 7.55%, so far.

According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in the call money market was 6.99% on Friday and total volume stood at Rs 1631 crore on the same day.

As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was 2.84% on Friday and total volume stood at Rs 6395 crore on the same day.