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RBI
steps in to arrest rupee fall below 45 mark
Mumbai:
The rupee recovered from an intra-day low of 44.97 per
dollar after the Reserve Bank of India intervened on Tuesday
and sold dollars through state-run banks to support the
market.
The
rupee weakened for a third straight session on Tuesday,
to end the trading session at 44.87, dropping 0.25 per
cent to its lowest close in 10 months.
The
domestic currency lost nearly 2 per cent in October and
nearly 3.3 per cent this year, as the interest of the
foreign institutional investors (FIIs) in the domestic
market appears to have dipped a bit.
On
Monday, FIIs were net buyers at Rs 74.40 crore in the
cash segment, after being net sellers at Rs 860.40 crore
on Thursday and Friday last week.
Added
to this the arbitrage opportunity of about 15 paise between
the offshore and onshore forward markets fuelled the negative
sentiment among the forex investors to buy dollars in
the domestic market and sell them offshore.
In
the forward market, premia were seen plummeting with the
six month annualised premium closing at 0.49 per cent
compared to 0.77 per cent on Monday, even the 12-month
forward premium fell to 0.50 per cent as against its previous
close of 0.64 per cent.
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BoB
plans Rs1,600-crore public issue
Mumbai: After ICICI Bank's and Union Bank's
announcement of launching public floats, Bank
of Baroda (BoB) has said it is planning to issue up
to 7.10-crore equity shares in its follow-up public offer.
This will result in the bank raising around Rs 1,600 crore.
After
the after the 100-per cent book-built issue the government's
stake in BoB will fall to 53.81 per cent from 66.8 per
cent now. The price band for the issue will be decided
later.
BpB needs to raise a good sum to fund its aggressive growth
plans, analysts said. It plans to allocate as much as
50 per cent of the net issue on a proportionate basis
to qualified institutional buyers (QIBs), including 5
per cent of the QIB portion for mutual funds.
Not less than 35 per cent of the issue will be available
for allocation on a proportionate basis to retail individual
bidders.
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