High government cash balance likely to limit additional borrowing
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Synopsis
The fears of additional borrowing due to GST shortfall may not be as substantial as bond dealers anticipated initially. Any large additional borrowing announcement would have triggered a spike in the yields. This time it didn’t.
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Lockdowns may have dented the government s revenues, but there s a positive side too.
The central government s cash balance with the Reserve Bank of India was estimated at Rs 4.2 lakh crore in the week ended May 21, according to QuantEco, a Mumbai-based research firm. This was the highest since demonetisation, cooling fears that market borrowings may not spike.
Short-term yields rising: What s in it for you?
Synopsis
“The liquidity surplus has reduced with the CRR (cash reserve ratio) rollback and likely rising government cash balances, said Anand Bagri, Head - domestic markets at RBL Bank. “This has put some pressure on short term rates that are seen rising sporadically.
Interest rates at the short end of the yield curve are rising in India due to a reduction in surplus system liquidity as the freedom over impounded cash pools, given to banks at the peak of the crisis last year, is withdrawn in phases.
“The liquidity surplus has reduced with the CRR (cash reserve ratio) rollback and likely rising government cash balances, said Anand Bagri, Head - domestic markets at RBL Bank. “This has put some pressure on
“The liquidity surplus has reduced with the CRR (cash reserve ratio) rollback and likely rising government cash balances," said Anand Bagri, Head - domestic markets at RBL Bank. “This has put some pressure on short term rates that are seen rising sporadically."
Consider these 4 stocks trading below their issue price instead of investing in IPOs
Three of the four stocks are small-time financial institutions, pulled down mostly because of the financial market crisis and negative impact of covid on their earnings.
Synopsis
To identify potential winners, we shortlisted companies that got listed in the past five years, excluding those that got listed in the past year. We then sorted the stocks on the basis of their potential upside.
Primary market investors are not immune to normal greed and fear. While most rush to buy fancied IPOs, they totally avoid the ones that get listed at lower prices or go below issue price. However, there is no need to avoid all stocks that are quoting below their issue price. Since the sentiment is negative, smart investors can pick up some good stocks from this space. To identify potential winners, we shortlisted companies that got listed in the