WebSify
Follow us on
Mail
Print

Re near 1-week high on foreign fund selling

Source : BUSINESS_STANDARD
Last Updated: Wed, Dec 26, 2012 19:31 hrs
An employee counts Indian currency notes at a cash counter inside a bank in Kolkata

The rupee rose to a near 1-week high on Wednesday, buoyed by hopes of continued strong capital inflows as shares posted a strong showing, outperforming most regional peers.

Capital inflows into Indian stocks have crossed $24 billion in 2012, with a large part of inflows driven after the government's move to push ahead with its ambitious reforms programme since mid-September.

The inflows have helped overshadow concerns about the country's twin deficits, on the current and fiscal accounts, sparking a recovery in the rupee from its record low of 57.32 hit in late June. The partially convertible rupee closed at 54.85 a dollar versus its Monday close of 54.95/96, after touching an intra-day high of 54.81, its best level since December 20.

Bonds remain high
Government securities (G-sec) remained high on consistent demand from banks and companies. The 8.15 per cent G-sec maturing in 2022 surged to Rs 100.24 from Rs 100.13 previously, while its yield moved down to 8.11 per cent from 8.13 per cent.

Call rates end firm
Call money rates ended firm at the overnight market here on Wednesday due to good demand from borrowing banks. The rate finished higher at 8.15 per cent from Monday's close of 8.10 per cent.

blog comments powered by Disqus
most popular on facebook
talking point on sify finance