Bond prices up as rupee rise is checked
Mumbai: The domestic currency weakened by 10 paise on Friday to end at 46.31 per dollar as against 46.20/21 to the dollar on Thursday.
Forwards Market: The six-month forward closed at 2.76 per cent (2.78 per cent) while the twelve-month closed at 2.41 per cent (2.46 per cent).
G-Secs: Bond prices shot up by over a rupee with the central bank announcing the introduction of overnight fixed rate repo from August 16.
Debt market players perceive this as a signal from the Reserve Bank of India (RBI) to improve liquidity. The 10-year benchmark 7.37 per cent 2014 paper closed at Rs.105.90.
Call rates: Easy at about 4.25 per cent.
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RBI introduces overnight fixed rate repo from Aug 16
Mumbai: The Reserve Bank of India has announced introduction of the overnight fixed rate repo at 4.50 per cent under Liquidity Adjustment Facility with effect from August 16, 2004. The call rates had hardened during the past three days, up to 5.50-5.75 per cent.

Analysts said tightening of liquidity in the inter-bank market has led to this measure being taken by the central bank. It will improve liquidity conditions, as surplus funds will be available in the inter-bank market now as funds could be parked with the RBI for only a day now and could be withdrawn at short notice, they said. This is in addition to the existing overnight fixed rate reverse repo at 6.00 per cent. The current practice of 7-day Repo and 14-day Repo will also continue, said a RBI release.

The operational guidelines and terms and conditions of the auction under the LAF would be applicable as at present, the release said.
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United India and Indian Bank tie up
Chennai: United India Insurance Company is launching 'Arogya Raksha', a scheme to provide mediclaim coverage in association with the Indian Bank. The scheme provides coverage for all Indian Bank account holders. It gives them compensation benefits for hospitaliation. The insured person and three family members (spouse and two children) are covered under the scheme. These policies will be marketed by the Indian Bank at all its branches.
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