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Informist, Wednesday, Oct. 30, 2024

By Richard Fargose

MUMBAI - The activity in the short-term debt market was largely muted as most banks and companies met their funding needs ahead of the month-end, dealers said. "It is month-end, most of the NBFCs (non-banking finance companies) have already raised funds for festive needs," a dealer with a brokerage firm said. 

No company tapped the commercial paper market on Wednesday, as against 23.85 bln rupees raised the previous day. The rates on commercial papers and certificates of deposits remained steady as primary market issuances were muted, dealers said. "No issuer will wait for last day, also this is the Diwali week, and activity will be very dull tomorrow (Thursday) as well," a dealer with a state-owned bank said. 

The rates on three-month certificates of deposit were at 7.15-7.20%, the same level as Friday. The rates on three-month commercial papers issued by non-banking finance companies were 7.45-7.50%, unchanged from the previous day. The rates on CPs of similar maturity issued by manufacturing companies were also unchanged at 7.20-7.25%.

Dealers said typically the demand for funds rises before the festival season due to high currency circulation and demand for credit. 

HDFC Bank was the sole issuer of certificates of deposits on Wednesday. The bank raised INR 6 billion hrough one-year paper at 7.55%. On Tuesday, surplus liquidity in the banking system widened to INR 1.01 trillion, against INR 849.83 billion on Monday. The liquidity surplus widened on account of the government's month-end spending.

--Primary market

* No CP was issued on Wednesday.

* HDFC Bank was the only bank that raised funds through CD.

--Secondary market

* Axis Bank's CD maturing on Jan. 14 was dealt twice at a weighted average yield of 7.1800%.
* Tata Motors Finance's CP maturing on Thursday was dealt twice at a weighted average yield of 6.5530%.

At 1700 IST, the following were the volumes, in INR billion, in the secondary market for short-term debt, as detailed by the Clearing Corp of India's F-TRAC platform:

NOTE: Details of the deals have been received from market sources.

End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Akul Nishant Akhoury

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