Debt funds typically held 0-5 per cent of their portfolio in cash and cash equivalents before this Sebi diktat.
Host of lenders led by State Bank of India (SBI) and Bank of India hiked lending rates after the Reserve Bank raised the benchmark interest rate to tame inflation. The hike has been effected in their benchmark rate linked to the repo rate, which increased by half a percentage point to 5.9 per cent. Even financial institutions like mortgage lender HDFC Ltd hiked the lending rate by 50 basis points effective Saturday.
For now, dollar can reign but BRIC nations have decided to address the issue at the 2010 Brazil summit.
The CBI on Friday told the Supreme Court that RJD supremo Lalu Prasad was playing badminton after being enlarged on bail in a fodder scam case on medical grounds, as it sought cancellation of the relief granted to the former Bihar chief minister.
Opposition on Thursday forced deferment of consideration of the contentious Mines and Minerals Bill in Rajya Sabha till on Friday.
Reserve Bank of India will resume issuing longer-term government securities next week under the market stabilisation scheme, along with the weekly auction of treasury bills.
A constitutional amendment bill to restore the powers of the states to make their own OBC lists was passed by Parliament on Wednesday, with the opposition and treasury benches joining hands in the Rajya Sabha to approve the legislation.
In the first-ever auction of 'enemy property' that the Indian government has held since the 1971 Indo-Pak war, rights shares of Tata Steel were sold to an Indian investment firm for Rs 485 per share against the rights issue price of Rs 300 per share.
Liquidity continued to remain tight. The Reserve Bank of India had to infuse around Rs 15,000 crore (Rs 150 billion) into the system. The market however expects the tightness to ease during the week, with the onset of government expenditure and successive cuts in the amount to be absorbed through treasury bill auction.
The increase raises the bank's benchmark advance rate to 13.75 per cent from 13.25 per cent. The revised floating reference rate for consumer loans, including home loans, will be 10.75 per cent.
Monday was the fourth consecutive day, proceedings were washed out over the Rafale jet deal and Cauvery issues.
The Opposition intensified its noisy protests in Lok Sabha on Wednesday over Pegasus snooping, farm laws and other issues with some unruly members even hurling papers and torn placards in the House, but the government went ahead with its legislative agenda and three bills were passed amid the din.
The Reserve Bank of India said on Thursday it would allow banks, primary dealers and national financial institutions to hedge interest rate risks on the country's exchanges.\n\n\n\n
Foreign institutional investments in equities soared by 43 per cent to over $9.43 billion this year pushing the Sensex to intra-day record high of 6,409 on Wednesday.
Interest rates on fixed rate home loans have been increased by 0.75 per cent to 8.50 per cent from the current level of 7.75 per cent with effect from November 17, 2004.
Rajya Sabha Chairman Jagdeep Dhankhar on Friday expressed anguish over Leader of the Opposition Mallikarjun Kharge trooping into the Well of the House during an opposition protest, saying it is for the first time that a person occupying the post has engaged in such conduct.
Gandhi said the Opposition wanted the House to function "often and well" and added that it was very important that cooperation happens on the basis of trust.
With only two months left for the completion of fiscal 2003-04, Centre's gross borrowings rose by about nine per cent to Rs 1,45,974 crore
Parliament officials said Birla was upset at the behaviour of both the Opposition and Treasury benches during the passage of bills in the Lok Sabha on Tuesday.
The Lok Sabha on Tuesday passed the Constitution amendment bill to restore the power of states to make their own OBC lists after a thaw in the logjam as Opposition parties backed the legislation but demanded the removal of the 50 per cent cap on reservation, with many of them also calling for a caste-based census.
'Rhetoric and chest-thumping are running high on India's recent growth record.'
'But will the giant waves developing elsewhere allow us to sail smoothly into fair winds?' asks Debashis Basu.
The Centre's gross borrowing crossed Rs 1,62,000 crore (Rs 1,620 billion) as bond market turned bullish after a fall in price level in the country last week.
Soaring redemptions of government securities and 364-day treasury bills resulted in a 2.33 per cent fall in net borrowings of the Centre at Rs 91,821 crore (Rs 918.21 billion) till January 9, according to PNB Gilts.
A whopping 42 per cent increase in redemptions of government securities and 364 day treasury bills led to an over 14 per cent decline in the net borrowings of the Centre till December 26, according to PNB Gilts.
Those who consider the rupee as a proxy for virility have started thumping their chests and dreaming of dethroning the dollar from its coveted position, observes Tamal Bandyopadhyay.
The government has mopped up Rs 1,26,034 crore (Rs billion) till last week taking the gross market borrowing to over 88 per cent of the budgeted Rs 1,42,867 crore (Rs 1,428.67 billion) for the entire fiscal.
Parliamentary affairs minister Ananth Kumar also attacked the Congress, which had not opposed the bill in Lok Sabha but voiced its strong opposition in the Upper House.
Ahead of the Parliament session, the government will hold a meeting with leaders of all parties on Sunday to brief them and hear their views, amid an intense buzz on whether it will have some surprise item up its sleeve during the five-day sitting.
The numbers, however, appear to be in favour of the ruling dispensation to get these bills passed from Rajya Sabha, while the lower house has already cleared them despite a key NDA member Shiromani Akali Dal vehemently opposing them.
The Telugu Desam Party, the All India Anna Dravida Munnetra Kazhagam and Dravida Munnetra Kazhagam continued to raise the issue of the dam over the River Cauvery and special status for Andhra Pradesh in both the Houses. While the Rajya Sabha was adjourned for the day soon after it met at 11.00 am, the Lok Sabha saw repeated adjournments, but managed to pass the Surrogacy (Regulation) Bill amid the din.
Rajya Sabha witnessed heated exchanges between the treasury and opposition benches after Congress leader Mallikarjun Kharge made remarks on the manner in which political parties select women candidates from weaker sections and raised the issue of 'delayed' GST payments to non-Bharatiya Janata Party ruled states.
The government on Tuesday introduced a constitutional amendment bill reserving 33 per cent seats for women in the Lok Sabha and state assemblies, reviving a proposal pending for years and blending history, politics and societal imperatives on the first day in the new Parliament building.
The country has reduced its holding of American treasury bills by as much as $1.9 billion compared to July when it stood at $58.9 billion.
Ending months of wrangling between treasury benches and the opposition, the Lok Sabha on Wednesday passed the civil nuclear liability bill after government dropped the contentious provision of 'intent' in the case of accident adopting a Bharatiya Janata Party amendment, paving the way for nuclear commerce with the world.
