India Inc is borrowing from global firms as interest rates sky rocket in India.
May touch 64/$ due to foreign flows slowing down
Union Bank of India, Canara Bank, Andhra Bank, Saraswat Co-operative Bank and YES Bank have come together to allow inter-bank fund transfers through debit cards.
With more favourable view on Indian economy and business environment under the Narendra Modi government, the risk premium for Indian papers began to climb down.
As many as nine respondents said RBI would hold the repo rate at 8% till March-end, 2015
Global liquidity expected to continue amid ECB stimulus
Growth in India's gross domestic product for the June quarter of 2013-14, as well as for the entire 2014-15, was 4.7%.
RBI is committed to bringing down retail inflation to eight per cent by January 2015 and six per cent by January 2016.
These schemes are expected to perform in the next 2-3 years.
To neutralise this, RBI has been doing forward swaps
According to experts, due to reduction in withholding tax, FIIs' investment in corporate bonds will pick up.
With the euphoria over the National Democratic Alliance's victory in the stock market continuing, the rupee is likely to touch 57 to the dollar soon.
Foreign institutional investors (FIIs) are set to pump in more funds in debt securities, as the next government under the Bharatiya Janata Party (BJP) is expected to be a stable one and is seen as growth-oriented by market participants.
The yield on the 10-year bond may fall to 8.70 per cent due to FII flows in debt.
Voting for the 2014 general elections will begin in April and it is expected Budget 2014-15 will be presented in June.
Banks have taken this aggressive posture even as liquidity has become comfortable on the back of increased government spending.
While the latter is being viewed as a greater concern, the former may gain prominence in the next few weeks.
As on Monday, the prices of many vegetables had fallen as much as 50% compared with those a month before, due to increased supply, following the arrival of winter crops in the markets.
Repo rate may well end 2013 at 8 per cent, where it had begun the year.
RBI's steps will prevent rupee from slipping, even if OMCs meet entire $ demand from market