Rupee higher against dollar
Mumbai: The rupee was higher against the dollar on Tuesday due to dollar selling by exporters. The rupee opened at 46.60/62 and closed at 46.54, higher than Monday's close at 46.58/59.

Dealers said the movement of rupee against the dollar could only be decided after the Federal Open Market Committee (FOMC) meetingon Tuesday.

Forwards: In the forward-premia market, the six-month ended at 1.11 per cent (1.08per cent) and the 12-month ended at 1.18 per cent (1.16 per cent).

Bonds: The bond market saw a rally after the auction of the 10-year and five-year government securities.

G-secs: The 7.59 per cent 10-year 2016 benchmark paper opened at Rs95.58 (8.26 per cent YTM), touched a high of Rs96 (8.19 per cent YTM) and ended at 95.99 (8.19 per cent YTM) against the previous close of Rs95.62 (8.25 per cent YTM). The 9.39 per cent 5-year 2011 opened at Rs105.94 (7.90 per cent YTM), touched a high of Rs106.2 (7.84 per cent YTM) and closed at Rs106.2 (7.84 per cent YTM). The 10-year yield could ease to 8.15 per cent, if there is no rate hike; and inch up to 8.25 per cent, if there is a rate hike," said another dealer.

Call rates: Call rates stood between 6.00 and 6.10 per cent.

Reverse repo: In the first one day reverse repo auction under LAF, the Reserve Bank of India received and accepted 26 bids amounting to Rs30,280 crore and in the second , 28 bids for Rs14,670 crore. There were no repo bids.

CBLO: The CBLO market saw 307 trades aggregating to Rs18,386 crore in the 5.82-6.00 per cent range.
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Tata-AIG offers micro insurance products
Mumbai: Private insurance company Tata-AIG has launched three micro insurance products targeting rural areas in the life insurance segment.

The three products, Navkalyan Yojana, Sampoorn Bima Yojana, and Ayushman Yojana, have been specially created with emphasis on product simplicity and ease of documentation, the company said at a press conference.

The first one the 'Navakalyan Yojana' is a five-year MI plan that provides financial protection to the policy holder's family with add-on accidental death benefit rider.

The second one the 'Sampoorn Bima Yojana' is a policy in which the policy holder pays a premium for 10 years and gets a cover for 15 years, and upon survival till maturity gets 100 per cent returns on the premium paid.

The last one the 'Ayushman Yojana' is a single 10-year protection plan with the benefit of payment at the beginning of the policy term. The policy holder gets back the premium amount plus additional 25 per cent on survival at the end of the policy term.
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ICICI Bank eyes $250mn overseas hybrid capital
Mumbai: The ICICI Bank is planning to raise funds from the overseas market to augment its capital base. ICICI Bank plans to raise $250 million through issue of tier-I perpetual bonds in the overseas market next week. Merrill Lynch and JP Morgan have been appointed merchant bankers to the bank's bond issue.

ICICI Bank is expected to raise close to Rs10,000 crore this year, through a combination of upper tier I and tier II. This would be appropriately raised from the overseas and domestic market, as per the prevailing market opportunity.

The bank raised Rs1,250 crore of upper tier II capital during the first quarter of the financial year 2006-07 and is actively working towards creating a retail market for hybrid instruments.

UTI Bank which recently raised capital from the overseas markets had priced with a fixed rate coupon of 7.25 per cent equivalent to a spread of 231.5 bps over the 10-yr US Treasury, or a yield of 7.27. As against the initial guidance of LIBOR + 175/200 bps, the actual trade was priced at less than the tighter end of that guidance at 172 bps.
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