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Rupee volatile - bonds bearish
Mumbai: The rupee ended a shade lower against the dollar on Wednesday closing at 43.88, marginally down from Tuesday's 43.87/8750.

Forwards market: The 12-month premium closed at 0.75 per cent (0.69) and the 6-month premium at 0.78 per cent (0.71).

G-Secs: The 10.25 16 year-2021 paper ended at Rs126.43 (7.37 per cent YTM), lower from the earlier close of Rs126.54 (7.36 per cent YTM). The 7.37 percent 9 year-2014 paper closed at Rs102.68 (6.94 per cent YTM), against Tuesday's close of Rs102.74 (6.93 per cent YTM). The 7.38 per cent 10-year benchmark 2015 paper was unchanged from the previous level of Rs102.68 (7 per cent YTM).

Call rates: The inter bank rates were between 5.05 per cent and 5.10 per cent (5.10-5.05 per cent).

Reverse repo: In the one-day auction, RBI received and accepted 32 bids amounting to Rs14,205 crore.

CBLO market: 200 trades for Rs8,278.25 crore in the rate range of 4.75-5.05 per cent.
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RBI: 182-day T bill `undersubscribed'
Mumbai: The auction of the 91-day treasury bill was fully subscribed, while the 182-day treasury bills was undersubscribed on Wednesday, according to an RBI release. The notified amount for the 91-day treasury bill was Rs4,000 crore, of which, Rs3,500 crore was under the Market Stabilisation Scheme (MSS).

The RBI received 37 competitive bids, amounting to Rs5635.55 crore. Of these, it accepted 24 bids. The cut-off price was Rs98.72 (5.20 per cent YTM).

The partial allotment percentage amounted to 53.22 per cent from eight bids. The weighted average price was Rs98.73. The RBI also received one non-competitive bid amounting to Rs269.32 crore.

In case of the 182-day treasury bill, the notified amount was Rs1,500 crore, of which, Rs1,000 crore was under MSS. The RBI received 29 competitive bids amounting to Rs923 crore. Of these, RBI accepted 17 competitive bids, amounting to Rs528 crore. The cut-off price was Rs97.38 (5.39 per cent YTM). The weighted average price was Rs97.39.

The devolvement on RBI was nil on both bills.
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Nagarjuna Construction to clear US$120mn global offering at AGM
Hyderabad: The Nagarjuna Construction Company Ltd (NCC) plans to raise funds to the tune of US$120mn through a global offering. The funding will meet its investment requirements in implementing BOT/BOOT projects and also to meet working capital and long-term funds requirements.

The company proposes to raise the funds either through issue of global depository receipts (GDRs) or foreign currency convertible bonds (FCCBs) or a combination of both. Having recently obtained the board approvals for the proposal, the company now plans to seek the consent of its shareholders at the ensuing extraordinary general meeting.

According to a senior NCC official, with the Government laying more thrust on infrastructure related projects, the construction industry has been performing well. The opportunities are steadily growing for those construction companies that are specialising highways, roads, water pipeline projects, hydroelectric projects and urban infrastructure projects.

In view of the proposed issue of GDRs/FCCBs, the company also proposes to alter its authorised share capital. The present authorised capital stands at Rs25 crore dividend into 10 crore equity shares of Rs2 each, amounting to Rs20 crore and 50 lakh redeemable preference shares of Rs10 each amounting to Rs5 crore. The company proposes to replace the preference capital with equity capital. Following this, the authorised capital will consist of 12.5 crore equity shares of Rs2 each aggregating to Rs25 crore.
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