Thursday, February 5, 2009

>Debtshell (RELIGARE)

* The bond yields shot up to an 8-week high, as the market anticipated fresh
bond issues by the government in order to reduce the widening fiscal
deficit. The 8.24% GSec bond yield closed at a high of 6.49% on
Wednesday, up from the previous close of 6.35% on Tuesday.

* Call money closed at 4.1-4.15% on Wednesday, more or less steady from
the previous day's close. Adequate cash in the system kept the call rates

* Indian rupee stayed put at 48.82/$ on Wednesday, steady from the
previous day's close. The Indian rupee has seen a reversal of gains made
in the past few sessions on account of strengthening dollar and choppy
equity markets on Wednesday.

* A larger than expected crude inventory build-up as well as a weak US stock
market dragged the Nymex crude lower, which traded at around
$40.2/bbl. The Crude had ended the previous session at $41.02/bbl. The
uncertainty on whether the stimulus package would be sufficient to revive
the US banking sector is expected to keep the crude lower in the near

* The government will sell Rs. 47.49 bn of 10-year state loans today, ahead
of the Rs. 70 bn federal bond auction on tomorrow. The GSec bond yields
are likely to remain weak in this week, given the fresh issue of bonds
hitting the market.

To see full report: Debtshell 5-02-2009