Informist, Monday, Dec 4, 2023
By Asmita Patil
MUMBAI – Fundraising through commercial papers fell today due to lack of big ticket issuances, dealers said. So far today, companies and financial institutions have raised 10 bln rupees through CPs, compared with 14.50 bln rupees on Friday.
“Market is dull today, mutual funds are mostly on the selling side,” a dealer with a mid-sized brokerage firm said.
After rising by 5-10 basis points on Friday, rates on short-term instruments remained flat today due to subdued activity, dealers said.
Rates on three-month CPs issued by non-banking finance companies were quoted at 8.00-8.20%. Rates on papers of similar maturity issued by manufacturing companies were at 7.45-7.65%.
Rates on CPs have been on the rise after the Reserve Bank of India’s decision to increase the risk weight on consumer loans disbursed by banks and non-bank lenders. The RBI also increased the risk weight on credit exposure of banks to non-banking finance companies. The move has resulted in an increased supply of CPs issued by non-bank lenders.
Rates on three-month CDs were quoted at 7.30-7.50%. Punjab National Bank became the sole issuer of CDs, raising around 60 bln rupees through papers maturing in three months at 7.40%.
–Primary market
* TV 18 Broadcast, Network 18 Media and Investments, Reliance Retail Ventures, and ICICI Securities raised funds through CPs.
* Punjab National Bank raised funds through CPs
–Secondary market
* Canara Bank’s CD maturing on Tuesday was three times at a weighted average yield of 6.7903%.
* Tata Steel’s CP maturing on Wednesday was dealt twice at a weighted average yield of 6.9939%.
At 1700 IST, the 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:
End
Edited by Maheswaran Parameswaran
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
