Page 2 - Open Market Operations

Bond market participants see OMO sales as liquidity surplus surges

The liquidity in the banking system has improved significantly on the back of government spending

RBI to hold rates, may sound confident of reaching inflation target: Report

The Reserve Bank is expected to hold its key rates at the forthcoming policy review, but may sound more confident about reaching its 4 per cent inflation objective, a foreign brokerage said on Wednesday. The rate-setting panel may prefer to stick to the 'withdrawal of accommodation' stance of the monetary policy, HSBC said in the report on the eve of the RBI MPC's decision. "While it's a close call, we also think the policy stance will remain unchanged, even as the RBI sounds more confident than before about getting to its 4 per cent inflation target," it said, listing out the aspects it will watch out for in the document or the resolution. These include any softness in tone around increased confidence of getting to 4 per cent inflation durably, or a change in growth or inflation forecasts, and, further commentary around the use of OMO (open market operations) sales to take out excess liquidity. In the background of another member dissenting at the last policy review, the brokerage

Last-mile challenges

US inflation is altering expectations

Artisan Partners divests 1.2% stake in Indus Towers for Rs 717 crore

Asset management company Artisan Partners on Wednesday divested a 1.2 per cent stake in telecom infrastructure major Indus Towers for Rs 717 crore through an open market transaction. The US-based Artisan Partners through its affiliate Artisan International Value Fund sold shares of Indus Towers on the BSE. According to the bulk deal data available with the BSE, Artisan International Value Fund offloaded 3,33,46,663 shares, amounting to a 1.24 per cent stake in Indus Towers. The shares were disposed of at an average price of Rs 215.10 apiece, taking the deal value to Rs 717.29 crore. After the latest transaction, Artisan Partners' shareholding in Indus Towers declined to 0.47 per cent stake from 1.71 per cent. Details of the buyers could not be ascertained. On Wednesday, shares of Indus Towers rose 1.92 per cent to close at Rs 225.50 apiece on the BSE. Last week, private equity major KKR, Canada Pension Plan Investment Board (CPPIB), and another entity sold Indus Towers' shares w

GIC buys units in Data Infrastructure Trust for Rs 933 cr via open market

Singaporean sovereign wealth GIC on Tuesday bought units in Data Infrastructure Trust for Rs 933 crore through an open market transaction. GIC through its wholly-owned subsidiary Anahera Investments Pte purchased 6.06 crore units of Data Infrastructure Trust (DIT) on the BSE. Data Infrastructure Trust (DIT) is a Sebi-registered Infrastructure Investment Trust (InvIT) that provides passive telecom infrastructure services. According to the bulk deal data available with the BSE, Anahera Investments Pte Ltd acquired 6,06,00,000 units, amounting to a 2.33 per cent of total units in DIT. The units were picked at an average price of Rs 153.95 apiece, taking the transaction value to Rs 932.94 crore. Meanwhile, private sector lender Axis Bank sold the same number of units at the same price. The unit of Data Infrastructure Trust gained 0.69 per cent to close at Rs 153.95 apiece on the BSE.

Govt sells 7.1 mn tonnes wheat in open mkt to keep prices under control

The government on Wednesday said 71.01 lakh tonnes of wheat and 1.62 lakh tonnes of rice have been sold through auction so far in the open market to keep prices under control. "In order to increase the availability of wheat and rice in the open market and to control the prices of wheat and rice, the Government has been offloading wheat and rice in the market through weekly e-auction from June 28, 2023," an official statement said. A total of 101.5 lakh tonnes of wheat and 25 lakh tonnes of rice have been allocated by the central government for offloading under the Open Market Sale Scheme. Wheat is being offered at a reserve price of Rs 2,150 per quintal for Fair and Average Quality (FAQ) and Rs 2125 per quintal for Under Relaxed Specifications (URS). The reserve price of rice is being kept at Rs 2,900 per quintal. Till January 24, 2024, 71.01 LMT wheat has been sold under OMSS. The first e-auction of rice under OMSS for 2023-24 was held on July 5, 2023. Till January 24, 2024, 1.62

Amid widening deficit, RBI may pump in liquidity via open market operations

Market participants said that if the government refrains from spending, the central bank might resort to other measures to infuse liquidity apart from variable rate repo auctions

HDFC Bank offloads CAMS shares worth Rs 270 crore via open market

Private sector lender HDFC Bank on Wednesday offloaded shares of Computer Age Management Services (CAMS) for Rs 270 crore through open market transactions. According to the bulk deal data available with the stock exchanges, HDFC Bank Ltd sold 5.29 lakh shares of CAMS on the National Stock Exchange (NSE) and disposed of 4.71 lakh shares of the company on the BSE. The shares were offloaded in the price range of Rs 2,700-2,700.08 apiece on the bourses, taking the combined transaction value to Rs 270 crore. Meanwhile, Fidelity Invst Trust picked up more than 2.82 lakh equity shares of CAMS on the BSE. Details of the buyers on the NSE could not be ascertained. On Wednesday, the scrip of CAMS fell 0.25 per cent to close at Rs 2,733 apiece on the NSE, while it slipped 0.24 per cent to settle at Rs 2,733.30 per piece on the BSE.

Treasury income's contribution to bank P&L's in Q3 to be modest: Analysts

The widening of the spread on state-government paper over central government bonds may work as a dampener, according to treasury executives

Govt sells 0.34 mn tn wheat, 13,164 tn rice in open market to check prices

The government has sold 3.46 lakh tonnes of wheat and 13,164 tonnes of rice through e-auctions to bulk consumers as part of its effort to boost domestic supplies and control retail prices. The government is selling wheat and rice from its buffer stocks to keep retail prices under control under the Open Market Sale Scheme (OMSS). Food Corporation of India (FCI), the government's nodal agency for food grains procurement and distribution, is conducting the e-auctions. The Centre has allocated 101.5 lakh tonnes of wheat for the OMSS till March 2024. "The 26th e-auction was held on December 20 wherein 4 lakh tonnes wheat and 1.93 lakh tonnes rice was offered. In the e-auction, 3.46 lakh tonnes wheat and 13,164 tonnes rice was sold at a weighted average of Rs 2,178.24 per quintal for wheat and Rs 2905.40 per quintal for rice," an official statement said. To control the retail prices of rice, wheat and atta, the government is organising weekly e-auctions of both wheat and rice. The minim

Sharp improvement in liquidity expected from January 2024: India Ratings

Govt spending, FPI flows to drive liquidity

Tight liquidity: Open-market operation not on the discussion table

The banking system liquidity widened to a near 5-year high on November 21 on the back of monthly goods and services tax payments

India a fair market with large opportunity where anyone can compete: NetApp

Global software company NetApp feels that the lack of domestic vendors makes the Indian market an open one where anyone can compete on a fair basis, as per a top company official. The San Jose, US-headquartered company wants to make India the biggest market in Asia in the medium term by overtaking Japan. Its Kerala-born chief executive George Kurian said Asia is performing better than the rest of world, and the company will be targeting to increase the share of revenues from the continent to 20 per cent from the present 18 per cent. Size and scope of the Indian market is strong, it is the fastest growing large GDP in the worldand there is no domestic vendor, so the Indian market is open for everybody to compete on a fair basis. That's why we believe it's a good opportunity, Kurian told PTI on the sidelines of the company's annual event Insight' here. He said an increasing number of multinationals are putting up their technology centres in India, and many American companies are maki

CP issuances fall to 1-year low in October as rates rise by 30 bps

On a month-on-month basis, the issuances fell by around 38 per cent

Dabur's Burman family seeks probe in sale of share, Religare denies charges

Burman family -- the promoters of Dabur -- has filed a complaint with regulatory authorities seeking a probe into sale of shares by Religare Enterprises Ltd's Chairman Rashmi Saluja. As per the complaint, Saluja sold her share in Religare Enterprises Ltd (REL) immediately after the Burman family disclosed to her that they intend to make an open offer for the financial services firm. Entities controlled by the Burman family -- promoters of FMCG major Dabur -- have written to the Securities and Exchange Board of India (Sebi) and stock exchanges that Saluja sold a portion of her personal holdings in Religare Enterprises Ltd a day after meeting a representative of the Burmans on September 20. Saluja at the meeting was informed about the intentions of Burmans, who held a 20.15 per cent stake in REL and had bought another 5 per cent, to make an open offer to buy another 26 per cent stake from open market to take a controlling stake in the financial services firm, Dabur India chairman Mohi

Reserve Bank of India may conduct OMO auction in first week of Nov

According to market participants, the Reserve Bank of India (RBI) will issue a notification on OMO sales by October 31

Many faces of OMO

The OMO sale is quite an innovative way to address the concerns around currency

Weekend Bites: More trouble in IT paradise, RBI's plans, and taxing expats

In which we munch over the week's platter of news and views

Turn and bounce

MPC needs to be extremely vigilant

Fund raised via bonds on private placement up 73% to Rs 3.3 trn in Apr-Aug

Corporates garnered Rs 3.31 lakh crore through the issuance of bonds on a private placement basis in the first five months of the ongoing fiscal, a surge of 73 per cent from the year-ago period. The funds were mopped up to strengthen balance sheets, retire existing debt and support working capital requirements, market experts said. According to data available with markets regulator Sebi, Rs 3.31 lakh crore was mopped-up through the route during the April-August period of the current fiscal. In comparison, firms raised Rs 1.91 lakh crore in the first five months of 2022-23, data showed. Market experts attributed several factors to higher fund mobilisation through private placement of corporate bonds such as increase in credit demand, soaring bank loan rates, and expensive overseas borrowing. In terms of numbers, 520 issuances took place during the period under review as compared to 508 in the year-ago period. In private placements, firms issue securities or bonds to institutional