MFs, banks stay away on tight liquidity

Mutual funds and banks preferred to remain on the sidelines on Monday due to the continued tight liquidity in the banking system, dealers said.

Mutual funds had faced huge pressure during October-end and early November as banks redeemed large amount from fund houses to meet the outflows for Coal India’s initial public offer. The Rs 15,200 crore IPO had got bids worth Rs 2.36 lakh crore.

Three-month certificates of deposits (CDs) were quoted at 7.75-7.95 per cent, as against 7.50-7.70% on Thursday. One-year CDs were quoted at 8.35-8.45 per cent, unchanged from Thursday.