Tauter Liquidity Expected As Rbi Takes Some Measures

There are signs of some tightness on the liquidity front, evident from the Reserve Bank of India (RBI) not accepting all the repo bids during the last two days. Forex flows have declined marginally.

Fund flow will largely depend upon coupon flows from central government and state government securities, as well as maturity of treasury bills.

Average daily repos have slumped to Rs 1,736 crore from last week