SYSTEM LIQUIDITY
BlackRock buys 9.46 lakh shares in Titagarh Rail for 153 crore via block deal
Bulk deal data from the BSE reveals that Rashmi Chowdhary sold more than 26.93 lakh shares at Rs 1,618 each, netting approximately Rs 436 crore from the transaction. Chowdhary, a promoter of the railway sector company, owned over 1.28 crore shares, representing a 9.52% stake as of the end of March, as per the shareholding information available on the NSE.
Sebi weighs tighter checks for stocks at F&O entry gate
In its June 8 consultation paper, Sebi had sought feedback from market participants for its plan to revise the eligibility criteria for stocks to be a part of the futures and options (F&O) segment. The regulator wants stocks that are part of the derivatives market to be more liquid and traded by a wide set of market participants to prevent manipulation and lower risks to the system.
NBFCs need to focus on compliance, risk and liquidity, says RBI executive director R Lakshmi Kanth Rao
Non-banking finance companies (NBFCs) were advised by RBI executive director R Lakshmi Kanth Rao to prioritize compliance, risk management, liquidity management, and customer protection. Rao emphasized the regulatory differences between banks and NBFCs, noting the need for NBFCs to enhance compliance systems and balance business with prudence.
Dinesh Kumar Khara picks 4 sectors which are on cusp of strong growth
Well, of course, I think the way things are emerging, I always say that the growth is a function of how the GDP or the macro will look like and our expectation is that the macro growth should be somewhere in the range of 7.5 to about 8. And if at all that is the kind of a situation, I think around 14-15% kind of a growth should be a reality.
How should one approach investing in a market dominated by liquidity? S Naren answers
I think basically we were the first bulls in PSU along with a few other domestic investors. And, at that point of time PSU valuations were mouthwatering. And I could not understand why other than a few of us in the industry, others did not find them mouthwatering.
RBI’s ASISO system faces glitch
The RBI faced a technical glitch in the Automatic Sweep-In and Sweep-Out (ASISO) facility, impacting banks' funds visibility. Daily money market data publication was delayed. The RBI is resolving the issue to reconcile banks' outstanding transactions. Market participants, bank treasury executives, and sources are monitoring the situation. The glitch occurred before the usual 9 a.m. data publication time.
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RBI using forex market tools to ease liquidity tightness
RBI uses forex tools to inject cash into banking system ahead of large outflows due to advance tax payments, keeping borrowing costs low and increasing reserves without impacting inflation-fighting stance.
RBI suffers system failure in automated system for banks’ liquidity management
The Reserve Bank of India faced a technical glitch in the ASISO facility, impacting funds visibility. Daily money market operations data publication was delayed. RBI is working to reconcile banks' outstanding lending or borrowing, ensuring SDF and MSF bids are managed effectively.
PSBs lean less on OIS as a hedgeon uncertain local rate outlook
State-owned banks are reducing their reliance on derivatives to hedge domestic interest rate risks, with a notable decline in the market share of nationalised banks in the IRS MIBOR segment. Factors such as liquidity deficits, market volatility, and inflation targets have influenced this trend.
Flexible approach in managing liquidity to help money market rates
RBI Governor Shaktikanta Das announced the central bank's commitment to maintaining money market rates and borrowing costs through flexible liquidity management. The RBI will use various operations to manage liquidity, responding to foreign investment flows impacting Indian bond markets. Analysts predict significant foreign flows following inclusion in JPMorgan's bond index, potentially affecting rupee liquidity. Das highlighted the RBI's ability to handle liquidity impact and swiftly respond to banking system liquidity fluctuations.
RBI to conduct buyback auction of government bonds worth Rs 30,000 crore
The RBI, which is the Centre’s debt manager, will carry out the auction in which banks and other bond market participants can buy back five government securities, the central bank said on Monday. One of the securities matures this month while another one matures in July. Three of the securities will mature in November.
RBI to face problem of plenty: Prepare for bond sales
The RBI's challenge for the year may not be inflation but liquidity. Government spending resumption and overseas fund flows complicate monetary policy effectiveness.
RBI's dividend transfer may ease deposit rates if govt spends it: Ind-Ra
India Ratings and Research (Ind-Ra) stated that the RBI's Rs 2.11 lakh crore dividend transfer will likely ease liquidity pressure and lower deposit rates in the banking system if the government spends it. The substantial dividend will strengthen the central government's fiscal position, potentially leading to additional spending or fiscal consolidation.
Liquidity deficit surges to four-month high
The shortfall of funds has pushed up the weighted average call rate (WACR), which represents banks' overnight cost of borrowing and functions as a determinant of other borrowing costs in the economy too. On Wednesday, the WACR closed at 6.75%, the same rate as the RBI's Marginal Standing Facility (MSF).
Government gets Rs 2.11 lakh crore from RBI by way of dividend
The Reserve Bank of India (RBI) has transferred a record surplus of Rs 2.1 lakh crore to the central government for FY’2023-24, exceeding expectations. This windfall, largely from interest income on overseas securities and income from LAF operations, strengthens the government's fiscal position and may lead to a reduction in borrowing. The surplus, determined by the Economic Capital Framework (ECF), represents 25.5% of RBI's total assets.
Rs 2.1 lakh crore: RBI’s record dividend swells govt coffers
The benchmark bond yield retreated below 7% on expectations that New Delhi would now need to borrow less this fiscal year. “The higher dividend is welcome, of course,” finance secretary TV Somanathan told ET. “It exceeds our estimate by 0.2-0.3% of GDP.” In the interim budget, North Block had factored in receipts of Rs 1.05 lakh crore under dividends and profits.
Slow spending by India government may prompt more cash infusion
India's federal government spending is expected to remain sluggish for several more months, leading to potential measures to inject liquidity into the banking system. Recent actions include three short-term securities buybacks and alterations in treasury bill borrowings. Slower spending is attributed to the ongoing national election.
Why did the RBI reject most bids in the bond buyback programme?
India's sovereign bond market buzzes with the Reserve Bank of India's buyback operation, easing debt repayment pressure and lowering interest costs. The operation injects liquidity into the banking system, influencing monetary policy and interest rate decisions.
RBI announces reduction in the quantum of the government’s treasury bill sales
The Reserve Bank of India (RBI) has responded to tight liquidity conditions in the banking system by announcing a significant reduction in the government's treasury bill sales and introducing a new selection of bonds for the Centre's buyback operations. This move aims to alleviate cash constraints for banks, which have been exacerbated by muted government spending during the ongoing general elections. By reducing the supply of treasury bills and offering bonds for repurchase at acceptable prices, the RBI seeks to inject liquidity into the banking system and ease borrowing costs for banks.
Serum Partners US company to advance needle-free injection technology
SII said, in a statement on Friday that the partnership with IntegriMedical aligns with its vision of 'Health for All' and IntegriMedical's mission to 'transform healthcare globally' by providing patient comfort, ensuring increased patient compliance, reducing needle-stick injuries, and enhancing the efficacy of liquid medication via needle-free dispersion.
RBI accepts only few bids at govt bond buyback for second week in a row
The RBI accepted bids worth Rs 2069.99 crore at Thursday’s buyback auction of government securities out of up to Rs 60,000 crore worth of bonds that the Centre had offered to repurchase. In a similar auction last week, the RBI had accepted bids worth Rs 10,512.99 crore out of Rs 40,000 crore worth of bonds that the government had offered to buyback.
ISRO's breakthrough '3D-printed' rocket engine saves 97 pc raw materials, 60 pc production time
The new engine, now a single piece, saves 97 per cent of raw materials and reduces production time by 60 per cent, ISRO said. ISRO achieved the major milestone with the successful hot testing of a liquid rocket engine manufactured through AM technology for a duration of 665 seconds on May 9, a release from the space agency said.
ISRO developing semi-cryogenic engine working on liquid oxygen kerosene
ISRO develops a 2,000 kN semi-cryogenic engine using LOX Kerosene propellant at IPRC, Mahendragiri. LPSC leads with ISRO support, achieving pre-burner ignition test at SIET and PRLD. Triethyle Alumnide is used for ignition.
Six-week long election leaves RBI with liquidity dilemma
Voting in India's national elections began on April 19 and will conclude on June 1, with counting on June 4. Typically, government spending slows during polls and picks up only after a new government is in place and a budget is presented.
Isro develops light-weight, innovative nozzle for rocket engines, terms it 'breakthrough'
VSSC in Thiruvananthapuram achieves a rocket engine breakthrough with a Carbon-Carbon (C-C) nozzle, enhancing payload capacity and rocket engine parameters. This innovation promises significant improvements for ISRO's launcher, the Polar Satellite Launch Vehicle (PSLV).
Govt's JIT plan for cash flows may trigger reset of liquidity variable
Indian lenders adapt to JIT tool with SNA 'SPARSH' for timely fund releases, impacting liquidity in state schemes. RBI utilizes e-Kuber for payments, potentially affecting 24x7 banking demands.
IAF chopper drops ISRO's 'Pushpak' Vimaan from 4.5 km altitude
ISRO said that after the RLV-LEX-01 mission, which was accomplished last year, the RLV-LEX-02 demonstrated the autonomous landing capability of RLV off-nominal initial conditions at the release from a Chinook helicopter. The RLV was made to undertake more difficult manoeuvres with dispersions, correct both cross-range and down range and land on the runway in a fully autonomous mode.
Pushpak 'Viman' lands successfully; How ISRO's new launch vehicle can pave the way for affordable space exploration
ISRO achieves a milestone in reusable launch vehicle technology with the successful landing experiment of RLV LEX-02. The mission simulated high-speed landing conditions of an RLV returning from space, demonstrating autonomous landing capability. ISRO re-validated its technologies in navigation, control systems, and landing gear. The mission, accomplished by VSSC, LPSC, and IISU, builds on the success of RLV-LEX-01, demonstrating the reuse capability of flight hardware and systems. ISRO aims to enable low-cost access to space through these advancements.
Lending rates to start easing only in second half of FY'25: Report
Bank deposit rates are unlikely to rise further. But the structural shift in the system will keep downward rigidity intact. Hence, banks’ lending rate is expected to remain high in FY’25 with some modest softening towards the end.
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