RBI restructuring relief for small borrowers, liquidity boost for healthcare
|US Treasury secretary Yellen was quick to clarify her comments about interest rate hikes being needed to prevent the economy from overheating. She said she does not see inflation as being a problem for the US economy and that any rise in prices would be transitory. She also added that she was neither predicting nor recommending a rate hike.
US Treasury secretary Yellen was quick to clarify her comments about interest rate hikes being needed to prevent the economy from overheating. She said she does not see inflation as being a problem for the US economy and that any rise in prices would be transitory. She also added that she was neither predicting nor recommending a rate hike.
FIs are seeking easier terms for loan repayments and restructuring. The Nifty ended with a cut of about 1% to end below the crucial 14500 marks. The Dow recovered from session lows to end flat. Bank stocks will be in focus today given the RBI governor address.
Bonds continued to rally with the yield on benchmark 10y falling briefly below 6% before ending the session at 6.01%. 10-12y SDL cutoffs were in the range of 6.77-6.87 in an auction yesterday.
The forwards eased after some Cash Dollar buying was seen yesterday. May points had risen to 54p initially before ending the session at 40p. We could see the forwards continue to normalize today. Cash Tom which was around 5.5p came off towards the end of the session to 2.5p.
Strategy: Exporters are advised to cover a part of their near-term exposure on upticks towards 74.80-75.00. Importers are advised to cover through forwards on dips towards 73.80. The 3M range for USDINR is 73.50 – 76.00 and the 6M range is 73.00 – 76.50.
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