Informist, Monday, Feb 26, 2024
By Asmita Patil
MUMBAI – Funds raised through commercial paper rose slightly today due to big ticket issuances by Reliance Retail Ventures, dealers said. So far today, companies and financial institutions have raised 30.75 bln rupees through CPs as compared to 28.75 bln rupees on Friday.
Of the total, Reliance Retail Ventures raised 15 bln rupees through CPs maturing in three months at 7.80%. “Issuers were silent today after huge fundraising last week,” a dealer with a mid-sized brokerage firm said.
Lack of major activity in the primary market kept rates steady today, dealer said. Rates on CPs issued by non-banking financial companies were at 8.35-8.55% and those with similar maturity CPs issued by manufacturing companies were at 7.80-8.00%.
Rates on certificates of deposit maturing in three months were quoted at 7.72-7.92%. None of the banks raised funds through CDs today.
Issuances in the short-term debt market are expected to remain high amid persistent liquidity deficit in the banking system. The liquidity deficit in the banking system was at 2.14 trln rupees on Sunday, largely unchanged from Saturday, as against 2.26 trln rupees on Friday, data from the Reserve Bank of India showed.
–Primary market
* Reliance Retail Ventures, Aditya Birla Housing Finance, Aditya Birla Finance, Tata Capital Housing Finance, and ONGC Petro additions raised funds through CPs.
–Secondary market
* Union Bank’s CD maturing on Tuesday was dealt six times at a weighted average yield of 6.7172%
* Tata Capital Housing Finance’ CP maturing on Tuesday was dealt four times at a weighted average yield of 6.7903%
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 Manisha Baxla
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