Reduction in lending rates is essential to revive the slowdown in India's economic growth, Bank of America Merrill Lynch said today

Lending rate cuts key to recovery: BofAML

Business Standard

Government bond yields are expected to fall further this week, in the absence of gilts auction. However, traders will be cautious ahead of the Union Budget scheduled later in the week.The yield on the 10-year benchmark bond 8.15 per cent 2022 ended at 7.80 on Friday, compared with the previous close of 7.81 per cent. The last bond auction worth Rs 12,000 crore was cancelled, giving support to yields.â€œThe yield on the benchmark bond is expected to trade between 7.80-7.77 per cent, with a downward bias,â€ said a dealer with a private bank.The Street is expecting the governmentâ€™s gross market borrowing for the next financial year to be higher than this year. However, it also expects the Reserve Bank of India to cut the repo rate further in the mid-quarter review of the monetary policy next month. That will provide comfort to the bond market in the near term.The rupee is expected to strengthen against the dollar from current levels this

Bond yields likely to fall; Re may strengthen

BS Reporter

The rupee rose early on Tuesday in anticipation of bunched dollar inflows as trading resumed after a three-day weekend.

Rupee rises after 3-day weekend, Greece deal

Reuters 

By her own admission, Kaku Nakhate is not the &ldquo;networking type&rdquo; and rarely goes out for lunches or dinners. Instead, she prefers to have a quick roti-sabzi in her corner office at the Bank of America (BankAm) headquarters in Mumbai&rsquo;s Nariman Point, write Shyamal Majumdar and Somasroy Chakraborty.

Lunch with BS: Kaku Nakhate

Forty years ago, John Connally, Secretary of the US Treasury, reportedly said to a delegation of Europeans worried about exchange rate fluctuations, &ldquo;The American dollar is our currency, but your problem.&rdquo; Evidently, the dollar (the world's reserve currency) continues to be a problem.

Strong outlook for rupee

I have been servicing a home loan for eight years (another 12 years are left).

Banking: Prashant Joshi

The rupee notched up its biggest single-day gain in three weeks on Friday boosted by inflows delayed by a strike that curtailed trading over the last couple of sessions, but investors were jittery ahead of the crucial 2013/14 budget next week

Rupee posts biggest single-day gain in three weeks

Reuters

The rupee recovered from initial losses and was being quoted higher by five paise at 54.42 against the US dollar in late morning trade today.

Rupee recovers initial losses, up 5 paise at 54.42/dollar

Press Trust of India

It was a routine check by the West Asia-based LP (limited partner or investor), when they were approached by an Indian private equity fund manager to raise his new fund. But, when the outcome of the check (due diligence, in the jargon) on him came out, the LP was shocked. The degree certificate, supposedly from one of Americaâ€™s Ivy League business schools, flashed to the LP was a fake one.LPs include pension funds, endowments, foundations, big institutional investors and high net worth individuals. As hundreds of Indian GPs (General Partners of fund managers) throng global markets for PE fundraising, most LPs have made it mandatory for a thorough reputational check, especially for first-time GPs.Says Reshmi Khurana, the India head of due diligence company Kroll, â€œContrary to the earlier  routine check to be done at the end of the LPâ€™s fund commitment to a GP, nowadays all due diligence firms are asked to conduct a reputational diligence on the fund manager

Investors check if fund managers' claims add up

The rupee fell its most in one-and-a-half months, as global risk aversion pushed domestic stock markets lower. The Street expects it to weaken further and touch Rs 55 a dollar soon, amid month-end demand.The currency awaits cues from the Budget next week. It closed 54.47, 41 paise lower against the previous close of 54.48 a dollar. â€œThe fall was primarily due to bearish domestic equity market sentiments,â€ said Akhil Thomas, assistant manager (forex), Federal Bank.Global risk assets were pummelled as world share markets fell and the dollar and safe-haven assets rose, a day after minutes of the Federal Reserveâ€™s last policy meeting cast doubts over how much longer the US central bank would stick to its stimulus plan. The sell-off was reflected in domestic markets, as shares fell their most in nearly seven months, raising concerns about whether there will be continued inflows into equities that have largely buoyed the rupee so far.According to San

Re falls 41 paise; Street sees more weakening

The rupee today dropped by 34 paise to 54.41 in late morning trade due to renewed dollar demand from banks and importers as the US currency strengthened in the overseas market

UPDATE: Rupee down 34 paise vs dollar in late morning trade

The rupee today strengthened by 11 paise to end at 54.07 on persistent selling of dollars by exporters and moderate capital inflows, amid reports of low volumes due to the ongoing two-day bank union strike.The rupee resumed higher at 54.10 per dollar as against the last closing level of 54.18 per dollar at the Interbank Foreign Exchange Market. During the session, rupee hovered in a range of 54.03 a dollar and 54.21 a dollar. It gained 0.20 per cent over Monday.Bonds higher on good demandGovernment securities (G-sec) surged on sustained demand from banks and companies.The 8.33 per cent G-sec maturing in 2026 rose to Rs 103.64 from Rs 103.34 previously, while its yield declined to 7.88 per cent from 7.92 per cent.The 8.15 per cent G-sec maturing in 2022 shot up to Rs 102.24 from Rs 102.11, while its yield edged down to 7.80 per cent from 7.82 per cent.Call rates steadyCall money rates ended steady at t

Rupee up 11 paise on $ sales, FII inflows

Agencies

J Hari Narayan, the chairman of Insurance Regulatory and Development Authority (Irda) is demitting office on Wednesday. Business Standard looks at some of the highs and lows of his five year tenure as the insurance regulator:

The man who brought changes

The rupee today appreciated by eight paise to 54.10 against the US dollar on the Interbank Foreign Exchange (Forex) market in early trade on increased foreign fund flows amid firm local equities

Rupee up 8 paise vs dollar in early trade

The forex and money markets are closed today on account of 'Chhatrapati Shivaji Maharaj Jayanti'.

Forex, money markets closed today for holiday

The rupee rose, reversing earlier losses, on speculation exporters sold their overseas earnings after the currency dropped to a one-month low. The rupee rose 0.1 per cent to 54.20 a dollar in Mumbai. The currency touched 54.4450 earlier, the weakest level since January 17.Bonds close mixed, call rate ends higher The government securities (G-Sec) closed mixed on alternate bouts of buying and selling, while call money rates at the overnight money market finished higher due to good demand from borrowing banks. The 8.15 per cent G-Sec maturing in 2022 rose to Rs 102.1050 from Rs 102.06 last Friday, while its yield inched down by 7.82 per cent from 7.83 per cent.The overnight call money rate finished higher at 7.95 per cent from previous closing level of 7.85 per cent. It moved in a range of 8.02 per cent and 7.50 per cent.

Re snaps 2-day decline as exporters sell $

The rupee came off one-month lows to end higher on Monday, as late inflows related to foreign funds selling dollars outweighed demand from oil importers and weak Asian currencies which were weighed down by continued worries about the potential for competitive devaluations.

Rupee gains on fund inflows

The rupee shed 11 paise to a one-month low against the American currency at 54.33 in late morning trade on sustained dollar demand from banks and importers on the back of a firm greenback overseas.

Rupee trades at month low vs dollar late morning

The rupee declined by 14 paise to Rs 54.36 per dollar in early trade on the Interbank Foreign Exchange market today, weighed down by dollar's gains against other currency rivals.

Rupee down 14 paise at 54.36/dollar

Government bond yields are expected to soften this week on expectations of a repo rate cut in the mid-quarter review of monetary policy next month. This is because the index of industrial production (IIP) and the wholesale price index (WPI) inflation data came lower.Indicating persistent sluggishness in the economy, industrial output contracted 0.6 per cent in December compared with 2.7 per cent in December 2011. And, WPI inflation fell to 6.62 per cent in January, the lowest since December 2009 compared with 7.23 per cent in January, 2012.â€œThe yield on the 10-year benchmark government bond 8.15 per cent 2022 is expected to trade in the band of 7.75-7.85 per cent and the bias is more towards yields falling. This is because the contraction of IIP and easing inflation give tremendous comfort to the RBI (Reserve Bank of India) to cut rates. The Street is also expecting the announcement of another open market operation purchase of gilts this week,â€ said Prasanna

Bond yields might fall; rupee could weaken

Duvvuri Subbarao, the head of Reserve Bank of India, said on Saturday there is room for monetary easing but it is limited, and there were upside risks to inflation resulting from food and commodity prices.

RBI sees limited room to ease policy

Financial Analysis: Find the Latest Financial News Analysis & Research Updates from all top sources for the Indian Finance industry on Business Standard.

Finance News Analysis, Financial Analysis and Research | Business Standard

Find the Latest Financial News Analysis & Research Updates from all top sources for the Indian Finance industry on Business Standard.

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