Informist, Monday, Mar 28, 2022

By Vishal Sangani

MUMBAI – A large issuance by Indian Oil Corp led to a spike in funds raised through commercial papers today.

A few companies also tapped the market today to meet their funding requirements and rolled over papers set to mature in the coming days.

So far today, CPs aggregating 57.00 bln rupees were issued, as against 38.00 bln rupees sold on Friday. Indian Oil Corp raised 35.00 bln rupees through papers maturing on Apr 11 at 4.24%.

The supply of papers by big-ticket issuers was readily absorbed because of their low risk profile.

Meanwhile, banks did not issue any certificate of deposit today as there is no immediate need for funds amid absence of big-ticket issuances, dealers said

On Friday, Bank of Baroda was the only issuer of CDs and had raised 18 bln rupees.

Liquidity in the banking system is currently estimated to be in a surplus of over 5.37 trln rupees.

The surplus liquidity is expected to widen in coming days on account of inflows due to government spending towards salary and pension payments, dealers said.

To take out excess liquidity from the banking system, the Reserve Bank of India, after market hours, announced that it will conduct a two-day variable rate reverse repo auction for a notified amount of 3.00 trln rupees on Tuesday.

Rates on short-term debt securities remained steady due to lack of significant triggers.

Rates on three-month CPs of manufacturing companies were quoted at 4.05-4.20%, while those on papers of non-bank finance companies quoted at 4.30-4.55%.

Rates on three-month CDs were at 3.95-4.15%.

--Primary market

* Tata Capital Financial Services, Indian Oil Corp and Reliance Jio Infocomm raised funds through CPs.

--Secondary market

* Axis Bank's CD maturing on Mar 3 was dealt at a weighted average yield of 4.8800%

* Adani Ports & Special Economic Zone's CP maturing on Tuesday was dealt six times at a weighted average yield of 3.6598%

Following were the volumes at 1530 IST in the secondary market for short-term debt, in bln rupees, 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 Maheswaran Parameswaran

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