Bond yields set to fall
The Reserve Bank of India's (RBI) decision to defer the auction of government bonds for a notified amount of Rs 15,000 this Friday is set to boost bullish bond market sentiments further. Besides that the Consumer Price Index (CPI) inflation for December eased to a three-month low.
"On review of the Government of India's (GoI) cash position and funding requirement, it has been decided, in consultation with GoI, to defer the auction of GoI dated securities amounting to Rs 15,000 crore scheduled to be held on January 17,&" said RBI on Monday.
As per the issuance calendar of marketable dated securities released in September, the borrowing programme of the government was to get over in the first week of February.
"The yield on the 10-year benchmark government bond may move down by 10-15 basis points on Wednesday,&" said Siddharth Shah, vice president, STCI Primary Dealer. The yie...
Country's external debt at end-March was up 6.6%
India's total external debt at end-March this year was $475.8 billion, up 6.6 per cent from the corresponding period a year earlier. This was driven mostly by an increase in external commercial borrowing (ECB) and non-resident Indians' deposits, showed data issued by the government on Friday.
As a percentage of gross domestic product, external debt was 23.8 per cent at end-March from 23.6 per cent as on March 2014.
Long-term debt was $391.1 bn, a rise of 10.3 per cent over March 2014. It was 82.2 per cent of the total external debt, as compared to 79.5 per cent at end-March 2014.
Short-term external debt was $84.7 bn, less by 7.6 per cent over the $91.7 bn at end-March 2014, and 17.8 per cent of the total external debt from 20.5 per cent in March 2014.
The share of government (sovereign) debt in total external debt was 18.9 per cent at end-March this year.
"A cross-country comparison based on Internatio...
Tax free bonds worth Rs 40,000-cr to hit street this fiscal
Tax free bonds worth Rs 40,000 crore is set to hit the market this financial year as the government has allowed seven entities to raise funds through this route. Experts believe these bonds will attract investors through it is agreed that the returns would be lower than what it was offered in the financial year 2013-14.
The amount allocated to various entities include tax free bonds of National Highways Authority of India (NHAI) for Rs 24,000 crore, Indian Railways Finance Corporation (IRFC) for Rs 6,000 crore, Housing and Urban Development Corporation (HUDCO) for Rs 5,000 crore, Indian Renewable Energy Development Agency (IREDA) for Rs 2,000 crore and Power Finance Corporation Limited (PFC), Rural Electrification Corporation Limited (REC) and NTPC have been allocated Rs 1,000 crore each.
"All the issuances are expected to get fully subscribed. It may not happen in day one, but it would get decent ...
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