Informist, Thursday, Mar 2, 2023
By Vishal Sangani
MUMBAI – Funds raised through commercial papers shot up today following a large issuance by Reliance Retail Ventures.
Reliance Retail raised 71 bln rupees at 7.75% through papers maturing in three months. The company tapped the market to meet its funding needs and to roll over papers set to mature in the coming days, dealers said.
So far today, CPs aggregating 85.50 bln rupees were issued, against 72.00 bln rupees on Wednesday.
The supply of papers by big-ticket issuers was readily absorbed because of their low risk profile.
Some companies also raised funds to meet their funding requirements.
Rates on short-term debt papers rose today, tracking the higher cutoff set by the Reserve Bank of India at the Treasury-bill auction.
On Wednesday, the cutoff yield at the auction for 91-day Treasury bills was set at 6.9391% as against 6.8154% on Feb 22.
Usually, short-term debt papers are issued at a premium over the yield on Treasury bills.
Rates on three-month CPs issued by non-banking finance companies increased to 8.00-8.25% from 7.95-8.20% on Wednesday, while rates on papers of manufacturing companies were at 7.75-7.95%, up from 7.65-7.85% on Wednesday.
Rates on three-month certificates of deposit increase to 7.60-7.85% compared with 7.55-7.80% at the previous close.
Rates also increased due to large issuances of such papers, dealers said.
Since last week, rates have risen by 35-40 basis points in the primary market.
Indian Bank was the lone issuer of CDs today, raising 35 bln rupees at 7.93% through papers maturing in one year. The state-owned bank tapped the market to meet fresh capital requirements for funds and to roll over papers set to mature in the coming days, dealers said.
On Wednesday, National Bank for Agriculture and Rural Development had raised 50 bln rupees through CDs.
Liquidity in the banking system is currently estimated to be in a surplus of 671.46 bln rupees, as against 182.57 bln rupees on Wednesday.
Surplus liquidity widened further due to inflows on account of the government's month-end spending in the form of salaries and pension payouts.
--Primary market
* HDFC Credila Financial Services, TV 18 Broadcast, Network 18 Media and Investments, Tata Capital Housing Finance, L&T Finance, Reliance Retail Ventures and ICICI Securities raised funds through CPs.
--Secondary market
* Bank of Maharashtra's CD maturing on Apr 5 was dealt three times at a weighted average yield of 7.7796%
* Small Industries Development Bank of India's CP maturing on Mar 20 was dealt five times at a weighted average yield of 6.7499%
At 1630 IST, following were the volumes, in bln rupees, in the secondary market for short-term debt, as detailed by the Clearing Corp of India's F-TRAC platform:
Certificates of deposit | Commercial papers | ||
Today | Previous | Today | Previous |
| 23.36 | 11.40 | 17.60 | 18.30 |
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 Tanima Banerjee
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (22) 6985-4000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2023. All rights reserved.
Informist, Thursday, Mar 2, 2023
By Vishal Sangani
MUMBAI – Funds raised through commercial papers shot up today following a large issuance by Reliance Retail Ventures.
Reliance Retail raised 71 bln rupees at 7.75% through papers maturing in three months. The company tapped the market to meet its funding needs and to roll over papers set to mature in the coming days, dealers said.
So far today, CPs aggregating 85.50 bln rupees were issued, against 72.00 bln rupees on Wednesday.
The supply of papers by big-ticket issuers was readily absorbed because of their low risk profile.
Some companies also raised funds to meet their funding requirements.
Rates on short-term debt papers rose today, tracking the higher cutoff set by the Reserve Bank of India at the Treasury-bill auction.
On Wednesday, the cutoff yield at the auction for 91-day Treasury bills was set at 6.9391% as against 6.8154% on Feb 22.
Usually, short-term debt papers are issued at a premium over the yield on Treasury bills.
Rates on three-month CPs issued by non-banking finance companies increased to 8.00-8.25% from 7.95-8.20% on Wednesday, while rates on papers of manufacturing companies were at 7.75-7.95%, up from 7.65-7.85% on Wednesday.
Rates on three-month certificates of deposit increase to 7.60-7.85% compared with 7.55-7.80% at the previous close.
Rates also increased due to large issuances of such papers, dealers said.
Since last week, rates have risen by 35-40 basis points in the primary market.
Indian Bank was the lone issuer of CDs today, raising 35 bln rupees at 7.93% through papers maturing in one year. The state-owned bank tapped the market to meet fresh capital requirements for funds and to roll over papers set to mature in the coming days, dealers said.
On Wednesday, National Bank for Agriculture and Rural Development had raised 50 bln rupees through CDs.
Liquidity in the banking system is currently estimated to be in a surplus of 671.46 bln rupees, as against 182.57 bln rupees on Wednesday.
Surplus liquidity widened further due to inflows on account of the government's month-end spending in the form of salaries and pension payouts.
--Primary market
* HDFC Credila Financial Services, TV 18 Broadcast, Network 18 Media and Investments, Tata Capital Housing Finance, L&T Finance, Reliance Retail Ventures and ICICI Securities raised funds through CPs.
--Secondary market
* Bank of Maharashtra's CD maturing on Apr 5 was dealt three times at a weighted average yield of 7.7796%
* Small Industries Development Bank of India's CP maturing on Mar 20 was dealt five times at a weighted average yield of 6.7499%
At 1630 IST, following were the volumes, in bln rupees, in the secondary market for short-term debt, as detailed by the Clearing Corp of India's F-TRAC platform:
Certificates of deposit | Commercial papers | ||
Today | Previous | Today | Previous |
| 23.36 | 11.40 | 17.60 | 18.30 |
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 Tanima Banerjee
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (22) 6985-4000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2023. All rights reserved.
