Informist, Monday, Apr 3, 2023
By Vishal Sangani
MUMBAI – ICICI Securities was the only issuer of commercial papers today, raising 500 mln rupees through papers maturing in June at 7.20%.
On Friday, ICICI Securities and Axis Finance had raised 2.50 bln rupees in total through CPs.
Issuers remained on the sidelines after completing their year-end borrowings and lower demand for funds, dealers said.
In March, companies had raised 1.27 trln rupees through CPs, up from 1.02 trln rupees in February, according to data compiled by Informist.
Most market participants remained on the sidelines ahead of the outcome of the Reserve Bank of India’s Monetary Policy Committee meeting on Thursday.
The domestic rate-setting panel is expected to raise the repo rate by 25 basis points at the end of its three-day meeting, according to a poll by Informist. This would take the policy repo rate to 6.75%, up 275 bps since May.
Market participants said a repo rate hike of 25 bps is already priced in in the current short-term debt papers rate.
Issuances also remained dull as market participants avoided large bets in a truncated week. Indian money markets will be closed on Tuesday and Friday on account of Mahavir Jayanti and Good Friday, respectively.
Rates on short-term debt papers were in a narrow range due to lower issuances, dealers said.
Rates on three-month CPs issued by non-banking financial companies were quoted at 7.35-7.60%, while rates on papers of manufacturing companies quoted were at 7.20-7.40%.
Rates on three-month certificates of deposit were quoted at 7.10-7.30%.
On the other hand, banks did not issue any certificates of deposit today as there is no immediate need for funds and also surplus liquidity in the banking system.
On Friday, Indian Bank was the only issuer, had raised 20 bln rupees through CDs.
Banks also remained on the sidelines after completing their year-end borrowings. Banks raised 1.10 trln rupees through short-term debt in March, highest in four years, up from 567.95 bln rupees in February.
Liquidity in the banking system is currently estimated to be in a surplus of 1.52 bln rupees, up from 1.07 bln rupees on Friday. The liquidity surplus has widened due to inflows on account of the government’s month-end spending in the form of salaries and pension payouts, dealers said.
–Secondary market
* Punjab National Bank’s CD maturing on Jun 19 was dealt three times at a weighted average yield of 7.1500%
* Housing Development Finance Corp’s CP maturing on Mar 22 was dealt at a weighted average yield of 7.8200%
At 1631 IST, following were the volumes, in bln rupees, in the secondary market for short-term debt, as detailed by the Clearing Corp of India’s F-TRAC platform:
NOTE: Details of the deals have been received from market sources.
End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Manisha Baxla
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (22) 6985-4000
Send comments to [email protected]
© Informist Media Pvt. Ltd. 2023. All rights reserved.
Source: Cogencis
