The liquidity tightness seen in the last couple of weeks on the back of heavy outflows following sale of state loans will ease this week.
However, there are some apprehensions on account of advance tax outflows. The sum in question stands in the region of Rs 8,000-10,000 crore.
The tightness in the funds position in the banking system was reflected in the low daily average repo inflows last week at Rs 702.5 crore, against an average of Rs 6,086 crore in the preceding week.
Also Read
The low daily average comes on the back of the second tranche of state loan auctions of Rs 5,753 crore, with the Reserve Bank of India receiving only a couple of bids.
The participants are expecting greater buying interest this week, as nationalised banks are no longer booking profits and have started taking position.
This will see demand for funds, and could mean average repo levels will remain low.
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →
Smart Quarterly
₹900
3 Months
₹300/Month
Smart Essential
₹2,700
1 Year
₹225/Month
Super Saver
₹3,900
2 Years
₹162/Month
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app