What would it take to increase liquidity in base metals futures

Metals are a key barometer of any country’s economic growth and countries have taken many measures to facilitate the growth and efficiency of metal markets. While trading volume of commodity derivatives has grown at a rapid pace in India, liquidity has remained largely limited to the near-month contracts. The low volume of the long-term contracts … Read more

India recovery not yet at point for pulling back liquidity: Nirmala Sitharaman

Indian economy has not reached the level where the central bank can begin pulling back liquidity as Asia’s third largest economy is still recovering from the shock of two major waves of coronavirus, Finance Minister Nirmala Sitharaman said on Thursday. “I am glad that RBI (Reserve Bank of India) understands that quicker retrieval of the … Read more

RBI expected to keep rates steady, liquidity steps eyed

MUMBAI: India’s central bank will likely keep interest rates at record lows this week as it assesses the economic fallout of the country’s evolving Covid-19 crisis, but the monetary authority is expected to reiterate its commitment on liquidity. The Reserve Bank of India‘s (RBI) monetary policy committee (MPC) will likely keep the key lending rate … Read more

How to gain from three sets of 10-year government bonds?

“If the spreads widen, spread betters will lose money, while they will gain if the differentials narrow,” Bhusari said. Synopsis Three 10-year sovereign papers, including the benchmark, are yielding spreads up to 49 basis points among themselves. That has created a window of opportunity for quant experts on bond desks. MUMBAI: Three different bond yields, … Read more

RBI consults banks on rupee intervention strategy

Mumbai: The Reserve Bank of India (RBI) consulted top bank treasury heads recently to seek their inputs with the central bank’s intervention in the forward market having failed to check the rupee’s rise, multiple sources familiar with the matter told ET. Banks suggested that the central bank intervene in the spot market instead but do … Read more

High liquidity, low rates help cos raise record funds via corporate bonds

Government organisations and government financial institutions mobilised 53 per cent of the total amount. Synopsis Banks and financial services sector collectively raised Rs 4.97 lakh crore or 64 per cent of the total amount while roads & highways sector mopped up Rs 58,052 crore, according to Prime. Mumbai: Indian companies raised record amounts through corporate … Read more

India Inc’s fund raising set to hit new record in FY21

The central bank moves on boosting liquidity, through bespoke measures such as TLTRO, should also help expand the corporate bond market. Synopsis Local companies, including banks, could raise between $95-100 billion via primary bond sales this financial year, which could be marginally higher than a year before, estimates ICICI Bank. MUMBAI: Corporate India, including local … Read more

Question of existence: Solvency and not liquidity should be the core of policy response for MSMEs

By Partha Chatterjee That the Indian economy is in bad shape was known, the extent was revealed by the announcement that Indian GDP contracted by 23.9% in Q1 of FY 2020-21. The impact is being felt by every segment, across the length and the breadth of the country. However, the most impacted are probably the … Read more

ABC of margin rules, bubble warnings & the unseen debt load on you: ETMarkets’ most read stories this week

By Atul PM Hello from ETMarkets’ work-from-home desk! Phew! It’s been such a rollercoaster week since we last caught up! To begin with, Monday blues were hard thanks to Sebi tightening the margin norms, which woke up the hibernating bears. By mid-week the bulls toiled hard to pull the market up, but the bears had … Read more