RBI likely to raise rates in todays monetary policy review
Jul 26th
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 [...]
Bond market/ G-Sec update
Jul 11th
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 to [...]
European Central Bank (ECB) in 2008 = RBI in 2010
Jul 7th
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 [...]
Equity market update
Jul 4th
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 took [...]
Bond market/ G-Sec update
Jul 3rd
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 [...]
RBI raises rates again
Jul 2nd
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 and [...]
Govt Securities update:June 26, 2010
Jun 27th
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 in [...]
India to move to market movement based oil prices
Jun 25th
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 you [...]
Weekly G-Sec update:June19, 2010
Jun 20th
High inflation released on Monday set the tone for the week. As expected, with the release of inflation above 10% mark, yields on benchmark 7.80% 2020 bond rose 8 bps to close at 7.69% on Monday under fears that RBI might be forced to raise rates to tame inflation. Rates also rose after comments from [...]
Weekly Equity update:June 19, 2010
Jun 19th
Moved by strong IIP numbers last week, Sensex continued its upward journey, rising 273 points on the first day of the week. Equity markets almost ignored the high inflation number.
The buoyancy continued for the week and markets touched a high of 17,616 on Thursday, its highest since April 27. This was the 7th consecutive day of [...]
