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Saturday, January 28, 2023

Short-Term Debt: HDFC Securities lone CP issuer, CD supply nil

Informist, Friday, Dec 30, 2022

 

By Vishal Sangani

 

MUMBAI – HDFC Securities Ltd was the lone issuer of commercial papers today. The company raised 1.50 bln rupees through papers maturing in three months at 7.35%.

 

There were no big-ticket issuances today and the requirement of funds, too, was low, dealers said.

 

On Thursday, CPs worth 42.25 bln rupees were issued. Housing Development Finance Corp was major issuer, raising 30 bln rupees through CPs.

 

Action in the primary short-term debt market was muted today as many people were on leave due to year-end holidays. The number of market participants in the primary market was also low because of low issuances by manufacturing companies.

 

Mutual funds were active in the secondary market in an attempt to churn their debt portfolios ahead of the end of the quarter.

 

As at 1630 IST, secondary market volumes of certificates of deposit on Clearing Corp of India’s F-TRAC platform were at 40.10 bln rupees, against the usual daily volume of 30-20 bln rupees.

 

Rates on short-term debt papers were flat due to lower issuances, dealers said.

 

Rates on three-month CPs issued by non-banking finance companies were quoted at 7.10-7.40%, while rates on papers of manufacturing companies were quoted at 6.95-7.15%.

 

Rates on three-month CDs were quoted at 6.85-7.10%.

 

Banks did not issue any certificates of deposit today as there was no immediate need for funds.

 

On Thursday, HDFC Bank was the only issuer, raising 18.00 bln rupees through CDs.

 

Liquidity in the banking system is currently estimated to be in a deficit of 99.75 bln rupees, up from 6.60 bln rupees on Thursday.

 

Liquidity in the banking system is expected to return to surplus in the coming days 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 Jan 19 was dealt five times at a weighted average yield of 6.6845%

* Small Industries Development Bank of India’s CP maturing on Monday was dealt twice at a weighted average yield of 6.7441%

 

At 1630 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:

 

Certificates of deposit

Commercial papers

Today

Previous

Today

Previous

40.1034.2522.8433.90

 

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 Avishek Dutta

 

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.

 

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© Informist Media Pvt. Ltd. 2022. All rights reserved.

Source: Cogencis

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