Rupee up
Mumbai: The rupee gained against the US currency on Friday on the back of dollar inflows appreciating to close at 44.5760, up from Thursday's close at 44.71.

Forwards: In the forward premia market, there was a rise with the six-month closing at 1.40 per cent (1.22) and the 12-month at 1.10 per cent (0.95).

G-Secs: The 8.07-12-year 2017 paper closed at Rs106.67 (7.18 per cent YTM), lower than the earlier level of Rs106.75 (7.17 per cent YTM).The 10.25-16-year 2021 paper ended at Rs126.63 (7.33 per cent YTM), down from Thursday's close of Rs126.70 (7.33 per cent YTM).

Call rates: The call rate closed at 5.5 per cent (5.5/5.6) and touched 5.7 per cent during the day.

Reverse Repo: In the first three-day reverse repo auction, RBI received threes bid for Rs120 crore. In the second three-day reverse repo auction, RBI received 18 bids for Rs3,590 crore and two bids for Rs420 crore in the repo auction.

CBLO: In the CBLO market, there were 407 trades for Rs16,922.20 crore in the range of 3-5.90 per cent.
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Morgan Stanley may acquire JM's stake in JV
Mumbai: Morgan Stanley is said to be planning a buy out of JM Financial's stake in its joint venture with the firm. Sources say there may be a realignment of equity holding between JM Financial and Morgan Stanley after which the two companies will set up their own investment banks.

Though Morgan Stanley has denied the rumours, industry sources say Morgan Stanley may initially buy out the Indian promoter — Nimesh Kampani and his family — from the listed entity, JM Financial.

The promoters currently hold 68.87 per cent in JM Financial, the holding company for the various entities that make up the JM Morgan Stanley Group in India. The Kampanis could get over Rs600 crore for their stake in JM Financial.
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HDFC, IL&FS sell off Colliers Jardine stake
Mumbai: Housing Development Finance Corporation (HDFC) and IL&FS have sold their combined 30 per cent stake in Colliers International (India) Property Services to Canada-based Colliers International for an undisclosed amount.

Sources close to the development said Colliers International, rated among the top four global real estate services companies, bought 15 per cent each from HDFC and IL&FS through its Mauritius-based subsidiary. Colliers International (India) has a paid-up equity capital of Rs1 crore.

With this acquisition, Colliers International (India) Property has become a wholly-owned subsidiary of Colliers International. The foreign real estate services firm had entered India in mid-1990s through a joint venture HDFC and IL&FS.
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IMD redemption leads to fall in forex reserves by over US$6bn
Mumbai: The redemption of India Millennium Deposits (IMD) has resulted in a depletion of the country's foreign exchange position in the last week of 2005. Forex reserves were down by $6.844 billion after the central bank sold foreign exchange to SBI for redeeming IMDs.

In its Weekly Statistical Supplement, the Reserve Bank of India said that the total reserves for week ended December 30, 2005 touched US$137.206bn against US$144.05bn in the earlier week.

Foreign currency assets expressed in dollar terms include the effect of appreciation or depreciation of non-US currencies such as euro, sterling, and yen.
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BoI has no plans to tap capital market
New Delhi: Bank of India (BoI) does not have any immediate plans to tap the capital market with a follow-on public offering (FPO) to augment its capital base, according to M. Balachandran chairman and managing director, BOI. The bank may however consider other avenues including preference shares and hybrid instruments to bolster capital and conform to Basel II requirements.

Balachandran said the bank is awaiting the guidance of the RBI on preference shares (Tier I) and also for new instruments (Tier III).

The Government holds 69 per cent stake in BOI. The bank currently has a capital adequacy ratio of 11.5 per cent.
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LIC acquires 15 per cent stake in IL&FS
Kolkata: LIC has acquired 15 per cent of the 26 per cent stake of the unlisted Infrastructure Leasing & Financial Services Company's (IL&FS) lying with the administrator of the Specified Undertaking of UTI (SUUTI).

SUUTI sources said the shares were sold at approximately Rs152 apiece. LIC has now sought the permission of IRDA to buyout SUUTI's balance (11 per cent odd) holding in IL&FS as per the existing insurance rules.

IL&FS was promoted by UTI (the predecessor to SUUTI) along with HDFC, sometime in 1988.
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