RBI is going to announce the First quarterly review of monetary policy in some time and unlike last time, expectations are quite clear this time. Last time, in April, analysts were divided in opinions about a 25 bps hike or a 50 bps hike or no action by RBI. But this time, analysts are almost [...]
Archive for the ‘Economy’ Category
Bond market/ G-Sec update
July 11th, 2010 
Praveen Bajaj Yields on Government securities rose to the highest level in two weeks following the mid-term 25 bps rate hike by RBI on last Friday. Benchmark 10 year bond, 7.80% 2020 security rose 8 bps to 7.64% from 7.56% close of last week. As expected, yields opened stronger on Monday, but later were dragged down due [...]
European Central Bank (ECB) in 2008 = RBI in 2010
July 7th, 2010 Praveen Bajaj I am sure that the subject of my article would be very confusing for some of you or may be strange for a lot of you. What I am trying to convey with this one is again some graduation level economics which I studied during my Macroeconomics paper in 2005, which I believe the world [...]
Crude oil update
July 4th, 2010 Praveen Bajaj After three weeks of continuous advance, crude oil saw considerable red ink this week with the active August month future falling by $ 6.72 or 8.5% to $ 72.14/ barrel compared to a close of $78.86 last week. Prices closed in red on 4 out of 5 days reacting to all the negative news [...]
Posted in Commodities, Economy 
Tags: employment situation in US, Russia's oil production, Spain's rating 
No Comments »Equity market update
July 4th, 2010 Praveen Bajaj Equity market indices witnessed the first weekly decline in 3 weeks. Sensex declined 0.6% for the week to close at 17460 against the last week’s close of 17574. After last Friday’s decline, the week opened on a positive note but for the week hovered in a range. However bearish sentiments on the last two days [...]
Bond market/ G-Sec update
July 3rd, 2010 Praveen Bajaj After a hefty 8 bps points jump on Friday of last week due to decision to free up fuel price (read MB update here), G-sec markets opened the week on a strong note. Announcement by RBI that the borrowing amount for the week will be at the reduced levels kept the sentiments up. Yields on benchmark [...]
Posted in Economy Tags: 7.80% 2020, benchmark 10 year bond, inflation, rbi, repo, Yields No Comments »RBI raises rates again
July 2nd, 2010 Praveen Bajaj As predicted by our analyst Rahul Sonthalia (click here to read) and myself (click here to read) in our earlier articles, RBI has raised the policy rates almost a month before the scheduled 1st quarterly review of monetary policy due at the end of July. In an after market hour announcement today, RBI raised the repo [...]
Posted in Economy Tags: bond market, equity, inflation, LAF, liquidity, monetary policy, repo rate, reverse repo rate, WPI, Yields 2 Comments »Govt Securities update:June 26, 2010
June 27th, 2010 Praveen Bajaj For the first 4 days of the week, government securities moved in a range. Benchmark 10 year bond, 7.80% 2020 bond moved in between 7.55% and 7.61%. Results of buyback of securities, in which RBI accepted amount of Rs 806 cr against a notified amount of Rs 10,000 cr. This led to a slight increase [...]
Posted in Economy Tags: 7.80% 2020, benchmark 10 year bond, inflation, liquidity, Yields No Comments »Equity market update: June 25, 2010
June 26th, 2010 Praveen Bajaj Markets started the week on a positive note with Sensex rising 305 points or 1.7% to close at 17,876.55 on Monday on positive global cues due to China announcing that it will take measures to make yuan float more freely against dollar and other foreign currencies (Click here for MB update). After that, index moved in [...]
India to move to market movement based oil prices
June 25th, 2010 Praveen Bajaj The Empowered Group of Ministers (EGoM), headed by Finance Minister Pranab Mukherjee, have decided in the meeting just now that India oil prices such as petrol and diesel prices will be determined by market. Details of the same, as to how this exactly will be carried out will be disclosed later and we will update [...]
Posted in Economy Tags: benchmark 10 year bond, diesel prices, EGoM, equity markets, inflation, Kerosene, LPG, petrol prices, policy rates, Yields 3 Comments »