News
- Bloomberg to add Indian bonds to emerging market indices in January 2025*
Bloomberg on Tuesday announced including Indian government securities called “Fully Accessible Route (FAR) bonds” in the Bloomberg Emerging Market (EM) Local Currency Government Index and related indices. This will be done over 10 months, starting January 31, 2025, instead of September 2024, which was envisaged earlier. This is the second major global index that will include Indian bonds. JP Morgan announced index inclusion from June 28, 2024. “Indian FAR bonds will be included in the Bloomberg EM Local Currency Government indices with an initial weight of 10 (percent) of their full market value on January 31, 2025,” a press release from Bloomberg said. The weighting of FAR bonds will be increased in increments of 10 percent of their full market value every month over the 10-month period ending in October 2025, when they will be weighted at their full market value in the indices. - Banking system liquidity goes into surplus mode after three months*
The liquidity in the banking system moved into surplus almost after three months as the Reserve Bank of India (RBI) absorbed over Rs 40,000 crore from the market on Monday, predominantly on the back of increased government spending. However, this situation may be short-lived given the higher demand for funds to pay taxes and year-end targets, treasury executives said. Meanwhile, two variable reverse repo rate (VRRR) auctions held on Tuesday received weak response. While the RBI offered to take Rs 1 trillion in the morning VRRR auction, it received offers worth Rs 72,840 crore. In the afternoon VRRR auction, the response was tepid with market participants offering to put just Rs 11,185 crore against a notified amount of Rs 75,000 crore. “The market is going to be volatile this month, driven by financial year-end activities. This is the time to keep cash and not for investing,” said the head of treasury at a private bank. The RBI is slated to conduct a VRRR auction for Rs 1 trillion on Wednesday.
Global market action
Dow Jones – Up by 0.01% or 2.10 points
FTSE – Up by 0.08% or 5.83 points
CAC – Down by 0.30% or 23.59 points
DAX – Down by 0.10% or 17.77 points
Gift Nifty – Down by 0.05% or 12.00 points
FII/DII activities
FII – Bought 1834.61 Cr worth of shares
DII – Bought 574.28 Cr worth of shares.
Primary market activities
IIFL Finance Ltd – 96.5%
Hitachi Energy India – 89.3%
Grnidwell Norton Ltd – 89.1%
Krishna Institute of Medical Sciences Ltd – 86.4%
Aavas Financiers Ltd – 85.7%
Primary market activities
IPOs opening today
Gopal Snacks Ltd (Main Board) – Issue size 650Cr
Shree Karni Fabcom Ltd (NSE SME) – Issue size 42.49Cr
Koura Fine Diamond Jewelry Ltd (BSE SME) – Issue size 5.50Cr
Commodities updates
Gold – Rs 64828/10gm, Silver – Rs 73350/kg, Brcrude – Rs 6478/barrel, Natural gas – Rs 161/mmBtu, Copper – Rs 726/kg.
Corporate News
RBI bars JM Financial from financing against debentures and shares.
Adani Power receives creditors’ approval for Lanco Amarkantak Power buy.
Paytm will overcome regulatory setbacks, says Vijay Shekhar Sharma.
