FIIs put in bids worth Rs. 391.71bn in G-secs

India Infoline News Service | Mumbai |

This was the largest auction this year and the money has to be invested into these bonds within a month

Market regulator SEBI's (Securities and Exchange Board of India) auction in government bonds received bids worth Rs. 391.71 billion from foreign institutional investors (FIIs).

The regulator conducted an auction worth over Rs. 420 billion for grant of investment limits to FIIs in government debt securities.

This was the largest auction this year and the money has to be invested into these bonds within a month.

The sharp decline in the value of the rupee created disturbance in bond markets expecting a sell-off by foreign investors, according to a media report.

The fall in bond prices on Thursday was so sharp that it triggered off circuit filters forcing a halt in trading. The 10-year bond yield rose 10 basis points to 7.36% which led to a halt in trading.

However, trading was resumed after Fixed Income Money Market and Derivatives Association of India (FIMMDA) received RBI (Reserve Bank of India) approval to raise the upper trading limits for government bonds yesterday, the report added.

On Thursday morning, the rupee hit an all-time low of 59.9275 as against a dollar post statements from the Federal Reserve. The rupee declined 1.6% in the start of trade.

The rupee has fallen almost 10% since the start of the year falling 5.35% in June alone.

Dollar/rupee opened at $1/Rs 59.85 today compared to $1/Rs 59.67 yesterday. Dollar/rupee closed at $1/Rs 58.71 yesterday.

Indian rupee has dropped 5.5% this year at par with Korea, Turkey and Brazil and much less than South Africa.


 

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