Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
Popular Search: ACCOUNTING STANDARD :: list of goods taxed at 4% :: due date for vat payment :: articles on VAT and GST in India :: ARTICLES ON INPUT TAX CREDIT IN VAT :: VAT RATES :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: Central Excise rule to resale the machines to a new company :: cpt :: VAT Audit :: form 3cd :: ACCOUNTING STANDARDS :: TAX RATES - GOODS TAXABLE @ 4% :: TDS :: empanelment
« Markets »
 Why we must tweak the market-led model
 PE transactions prompt income tax queries over round tripping concerns
 Amended India-Mauritius tax treaty only covers investments in shares
 Government drops cap gains tax on startup shares held for 2 years
 Tax-free bonds regain demand in the secondary market
 Relevant Market’ Under Competition Act, 2002
 Indian markets best in terms of earnings momentum, price revision
 How India will become a common market with GST
 Broader markets outperform; Nifty holds 8,500
 Have Indian markets run ahead of fundamentals?
 Sebi mulls allowing foreign VCs in infra investment firms

Market expects government to borrow Rs 40,000-50,000 crore: Ashish Ghiya, Derivium Capital & Securities
December, 20th 2011

We saw the RBI statement come out last Friday, no surprises there. But given the fact that it has given some sort of assurance to the markets that it will exercise OMO purchases in the market as and when required, do you believe that is comfort enough really for the bond markets?

Ashish Ghiya: My takeaway on the bond markets was more like, bond markets they got a fantastic flavour of teasing. Teaser kind of a background where RBI did briefly mentioned that the rate cycle has turned. So that definitely turns the mood positive. And it also mentioned the OMOs will be conducted so this is giving money to kind of punt on that. So it was a good teaser, it is like acting without acting stuff. Certainly, it will be pretty positive for a bond markets.

ET Now: Do you think that the bond markets at all were expecting a cut in the CRR which was quite a contentious issue and how do you believe what is the range that you are foreseeing for the yield on the bonds going forward?

Ashish Ghiya: Markets did not go into the review particularly expecting a CRR cut, although may be around a week or 10 days back there was a very heightened excitement. There is a lot of excitement in the market regarding one. But going into the review market, they were not expecting CRR cut so in that sense they were okay. We did not really believe that RBI would go ahead with the CRR cut till OMOs are doing well.

Going ahead, it would be dare devilish to say that the yields are going to go up, but there are two-three factors picking the yields. One is how long will the OMO purchase go on, because markets are largely getting supported by that.

So, if the OMO purchase auctions kind of stop by something like around mid January or something and if that is coupled with the extra borrowing which the markets are expecting the government to announce, it all depends on the timing of that. But my range should be something in the range of 8.75 to 8.5 stuff on 10-year bonds.

ET Now: You did talk about the additional government borrowings that the market is anticipating, do you expect that announcement to come may be by mid to end January and what is the extent to which you see the government borrowing additionally from the markets?

Ashish Ghiya: If the government has to announce next to our borrowing programme which is widely expected, they will have to announce it much quicker because January is like they are losing lot of time because in terms of the auction calendar also they just have the full of March. They have the whole of March and of a few weeks in between to kind of cover it up. So they will have to announce and tell the markets much earlier than that, if they have to.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Content Management System development CMS development Content Management Solutions CMS Solutions Content Management Services CMS Services CMS Software

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions