Informist, Monday, Feb 28, 2022
By Vishal Sangani
MUMBAI – There were no issuances of commercial papers in the primary market today due to low market participation.
Some companies remained on the sideline as they weren’t in immediate need of funds. The funds raised by state-owned companies were also low because they have already rolled over papers set to mature in the next few days.
On Friday, companies had raised only 2.25 bln rupees.
Participation was low because of a few rollovers in the primary market and also as market traders avoided placing large bets ahead of holiday.
Money markets will be closed on Tuesday on account of Mahashivratri.
Rates on short-term debt papers moved in a narrow range today due to lack of significant triggers amid low issuances, dealers said.
Rates on three-month CPs of manufacturing companies were quoted at 4.00-4.15%, while those on papers of non-bank finance companies were quoted at 4.30-4.45%.
On the other hand, banks did not issue any certificate of deposit today as there is no immediate need for funds owing to surplus liquidity in the banking system.
On Friday, CDs aggregating 45.00 bln rupees were issued.
Liquidity in the banking system is currently estimated to be in a surplus of over 7.36 trln rupees as against 7.12 trln rupees on Friday.
The surplus is expected to widen more in the coming days on account of inflows due to government spending towards salary and pension payments, dealers said.
To suck out excess liquidity from system, the RBI today announced a four-day variable rate reverse repo auction, which saw banks park 1.48 trln rupees as against the notified amount of 3.50 trln rupees.
Rates on three-month CDs were quoted at 3.85-4.05%, in the secondary market.
–Secondary market
* IndusInd Bank’s CD maturing on Aug 17 was dealt two times at a weighted average yield of 4.5001%
* Indian Oil Corp’s CP maturing on Mar 11 was dealt at a weighted average yield of 3.5210%
Following were the volumes at 1530 IST in the secondary market for short-term debt, in bln rupees, 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 Maheswaran Parameswaran
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Source: Cogencis
