Outflows from the forex market and preparation for the reporting fortnight on Friday resulted in the market witnessing tight liquidity conditions.
Some banks such as the State Bank of Bikaner and

Tight liquidity raises borrowing costs for firms

Business Standard

A tight liquidity situation further accentuated on Wednesday, leading to the Reserve Bank of India (RBI) infusing around Rs 35,000 crore into the market.
According to dealers, the rush for funds was

Bankers rush for funds

Weak cues from the global equity markets and rising crude prices led the spot rupee to close weaker at 42.81/83 compared to Wednesday&rsquo;s close of 42.64/65. The rupee breached the 43-mark and rose

Rupee breaches 43 on high demand from FIIs, oil firms

Liquidity is likely to remain tight since the anticipated government expenditure has not yet started. According to dealers, banks will be reluctant to lend in the market as the week is short,

Delay in govt spend may hit liquidity

The spot rupee fell to a 17-month low of 43.70 against the dollar after opening weaker at 43.07, compared to the closing of 43.00 last week.
According to dealers, there was acute shortage of dollars

Rush for dollars sends rupee to 17-month low

The liquidity in the market continued to be tight, with the interbank call rates reaching an intraday high of 9.9 per cent.

Liquidity on a tight leash

After six months, India&rsquo;s foreign exchange (forex) reserves have dropped below the $300-billion mark.

Forex reserves dip below $300 bn

Liquidity is expected to ease this week as funds from the redemption of bonds flowing into the market are likely to exceed the ouflow from the forthcoming auction.

Bond redemption funds likely to ease liquidity

A small photo studio in T Nagar, Chennai, sold more than 50 general insurance policies in the last months alone. All that a person had to furnish was his name, address and the nominee&rsquo;s name.

Now, buy general insurance cover at kirana shops

The rupee recouped all losses and ended up against the US dollar as government-owned banks persistently sold the greenback on behalf of Reserve Bank of India on the second consecutive day.

Rupee recoups losses; call rates end lower at 8%

The yield on the government bonds eased substantially on an improvement in liquidity and expectation of moderation in inflation.

Gilt yields decline as  liquidity improves

Rupee ended below the crucial 43 mark for the first time in over five weeks as banks bought the greenback after global crude oil prices hit a fresh record high today, dealers said.

Record crude oil prices push Re below 43-mark

&nbsp;Oil rally, arbitrageurs take currency to 15-month low of 43.33. 
&nbsp;<IMG src="/general/images/070208_01.

Rupee plunges on capital outflows

The rupee ended up, snapping a three-day fall against the US dollar as banks sold the greenback on behalf of foreign institutional investors (FIIs) after the local equity market gained over 5 per cent today.

Re gains, ends at 43.16 against dollar

The rupee ended down against the US dollar as banks bought dollars in late trade to meet demand from importers and foreign funds, dealers said.

Re ends weak on dollar demand, falling equities

The country&#39;s foreign exchange (forex) rerserve fell $691 million to $311 billion for the week ended June 27, mainly due to a dip in the foreign currency assets.

Forex reserves fall $691 million

The call money rate may rise sharply as the first stage of the cash reserve ratio hike takes effect.

Calls may rise on CRR hike effect

The overnight call rates ended up on Monday on strong demand from banks to meet reserves for the new reporting fortnight.

New reporting fortnight pushes call

Government bond prices ended 65 paise lower as comments by the government&#39;s Chief Economic Advisor Arvind Virmani heightened concerns that the Reserve Bank of India will again hike interest rates again to combat inflation.

Gilts plunge on rate hike fears

Home loan major HDFC&#39;s net interest income for the June 2008 quarter has come off by about 26 per cent sequentially.

HDFC: As steady as ever

Government bond prices ended up today because the sharp fall in international crude oil prices provided some relief to the investors, dealers said.

Bonds end up as oil drops

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.

Page 425 - Finance News Analysis