Informist, Wednesday, Oct 18, 2023
By Sony
MUMBAI – Fundraising by commercial papers fell today due to lack of big-ticket issuances by companies and financial institutions, dealers said.
So far today, companies and financial institutions have raised 32.75 bln rupees through CPs, against 55 bln rupees on Tuesday.
On Tuesday, National Bank for Agriculture and Rural Development raised 30 bln rupees through papers maturing in three months at 7.18%.
NABARD remained the largest issuer of CPs today, raising 16.5 bln rupees through papers maturing in three months, at 7.18%.
Lack of major issuances kept rates on short-term instruments steady today, dealers said. Rates on three-month commercial papers issued by non-banking financial companies were quoted at 7.55-7.75%. Rates on papers of similar maturity issued by manufacturing companies were at 7.20-7.40%.
Rates on three-month certificates of deposit were quoted at 7.15-7.35%. Bank of Baroda was the sole issuer of certificates of deposit today, raising 12.5 bln rupees through papers maturing in three months at a rate of 7.13%.
Money market participants remain watchful of improving banking system liquidity. “Liquidity today improved slightly, but it is expected to remain tight ahead of the festival season”, a dealer with a brokerage firm said.
At the start of trade today, liquidity in the banking system was estimated to be in a surplus of 15.12 bln rupees, as against a deficit of 63.59 bln rupees on Tuesday.
–Primary market
* NABARD, Tata Power Renewable Energy, HDFC Securities, Axis Finance, Tata Capital Housing Finance, and Godrej Industries raised funds through CPs.
* Bank of Baroda raised funds through CDs.
–Secondary market
* Punjab National Bank’s CD maturing on Oct 27 was dealt twice at a weighted average yield of 7.0005%
* Bajaj Finance’s CP maturing on Thursday was dealt once at a weighted average yield of 6.7537%.
At 1700 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
Edited by Vidhi Verma
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