Daily Newsletter

April 9, 2012
Debt Market Indicators Call Rate 10 Yr Gilt 3-mth CP rate 3-mth CD rate 12-mth CD rate 5 yr Corp Bond G-sec Volume (Rs Cr)
9.10% 8.90% 8.70% 8.50% 8.30% 8.10% 7.90% 7.70%

Apr 4 9.10% 8.69% 10.50% 10.03% 10.00% 9.54% 14570

1D Ago 8.80% 8.74% 10.70% 10.25% 10.00% 9.52% 9965

10-Year Benchmark G-Sec Yield

Indian Debt Indian call money rates ended higher at 9.00-9.10% on Wednesday as against 8.75-8.80% on Tuesday as banks borrowed to meet reserve needs for the long weekend and as liquidity remained tight. Banks borrowed for five days as financial markets will remain closed on Thursday and Friday for Mahavir Jayanti and Good Friday, respectively. CBLOs rate ended at weighted average rate of 7.69% on Wednesday, as against 8.01% on Tuesday. Banks borrowed only Rs 48295 cr from the RBI's repo tender on Wednesday as compared with RS 1.38 lakh cr on Tuesday. Domestic government bonds ended higher on short covering and value buying following sharp fall in the previous session. The yield on the 10 benchmark 8.79%, 2021 bond fell to 8.6890% on Wednesday from 8.7362% on Tuesday. Earlier in the session, bonds received a sentiment lift from the reduction in the size of 91-day T-bill auction on Wednesday. The RBI, in consultation with the government, cut the quantum of 91-day T-bill auction to Rs 6000 cr from Rs 9000 cr notified earlier. Indian Equity Indian equities ended down on Wednesday due to heavy selling pressures amid a weak global trend. Sentiments were also dimmed on profit booking ahead of the long weekend. Jindal Steel emerged as the topmost loser on Nifty, declining 3.2%. Other index majors like L&T, DLF, ICICI Bank, Sterlite and JP Associates also witnessed the downtrend, ending down 1-3%. Movements remained stock specific with Essar Oil falling 5% on the SC rejecting its petition to review an earlier order disallowing the company's Vadinar refinery from availing sales tax deferment benefits. Shares of GAIL tumbled 3% on worries over a hit on profitability after the Petroleum and Natural Gas Regulatory Board cut the liquefied petroleum gas pipeline tariff by 20-24% for parts of the company's network. BHEL was the top performer on Nifty rising 3.6% after it announced upbeat quarterly earnings and withdrew the draft prospectus for its follow-on public offer. Global Indices Dow Jones retreated on Thursday on fears that Spain may have trouble paying back its debt after rates on Spanish government bonds rose to the highest point since November. FTSE ended higher on Thursday, buoyed by resource firms which tracked a rise in commodity prices. Straits Times index fell on Thursday, as renewed fears about Europe's debt situation hurt financials, while a stronger yen hit currency-sensitive exporters. Nikkei fell on Friday amid cautiousness ahead of key US jobs data and fresh worries over the sovereign-debt outlook in some euro-zone nations. Hang Seng index ended lower on Thursday after a disappointing Spanish bond auction. At 8.30 AM in the morning, Asian Markets were trading lower. Domestic Economic and Corporate News India's foreign exchange reserves fell by $742.5mn to $294.4bn in the week ended March 30. Finance Ministry asks public sector banks to provide details of all the branches that are not making profit for the last two financial years. RBI approves Axis Banks purchase of Enam Securities. SEBI is planning to come out with a new code of conduct for brokers; will also review the internal audit and inspection process of the stock exchanges and the depositories along with their penalty structures. BHEL to set up a fabrication unit at a cost of Rs.1000cr near Nagpur. SBI decides to extend to another quarter the concessional rates on floating rate home loans. Coal India firms up a Rs.5000cr kitty for investment in corporate bonds. International News US unemployment rate fell to 8.2% in March from 8.3% in the previous month; employers added 120000 nonfarm jobs to their payrolls in March. Bank of England leaves its key bank rate at a record low 0.5% and makes no adjustment to its 325bn pounds asset-buying program. UK industrial production rose 0.4% in February as compared to a 0.6% drop in January; manufacturing production fell 1% in February, following a 0.3% decrease in January. Japan's current account surplus fell 30.7% in February from a year earlier to 1.18 trillion yen. China's consumer price inflation rose 3.6% in March, compared with a 3.2% rise in February. Commodity News Crude oil prices rose $1.84 to settle at $103.31 a barrel on the NYMEX after initial jobless benefits claims fell to the lowest level in nearly four years last week.
4-Apr-12

30-Mar-11

20-Apr-11

24-May-11

8-Jun-11

8-Jul-11

9-Aug-11

4-Nov-11

9-Dec-11

10-Feb-12

29-Feb-12

26-Aug-11

14-Sep-11

29-Sep-11

23-Nov-11

26-Dec-11

Indian Indices Sensex S&P CNX Nifty BSE Mid cap

Apr 4 17486 5323 6474

1D % Chg -0.63 -0.66 -0.03

3M % Chg 10.10 12.07 22.96

1Y % Chg -11.25 -9.91 -8.81

Currencies Vs INR USD GBP Euro 100 Yen Global Indices DJIA Nasdaq FTSE 100 Nikkei 225 Hang Seng Rs. Cr (Equity) Buy Sell Net Net Since Jan 1, 2012 Commodity Prices NYMEX Crude Oil ($/bbl) Gold (Rs / 10 gm)#
# NCDEX spot prices Source: CRISIL

Apr 4 51.11 81.09 67.39 61.75 1D % Chg -0.11 0.40 0.35 -0.81 NA

Apr 3 50.72 81.05 67.49 61.63 3M % Chg 5.19 15.38 1.77 15.47 1Y % Chg 5.38 10.37 -4.72 1.09

Apr 5 13060 3081 5724 9688* 20593

9.46 -14.73 *Data as of Apr 6 MF Inv Apr 3 525 406 119 -5558 DII Inv Apr 4 840 713 127 -21821

FII Inv Apr 3 2010 1641 369 45705

Apr 5

1D Ago

3M Ago

1Y Ago

103.31 101.47 101.81 108.34 NA 27911 27690 20750

16-Mar-12

23-Jun-11

25-Jul-11

10-Jan-12

25-Jan-12

6-May-11

18-Oct-11

Daily Newsletter
April 9, 2012

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