Rupee ends almost unchanged
Mumbai: The rupee ended unchanged against the dollar on Tuesday. The rupee opened at 44.79/80, to finally close at 44.75/76 against Monday's close at 44.73.50/74.50.

The dollar weakened against the overseas currencies.

In forwards, the six-month closed at 2.98 per cent (2.96 per cent) and the 12-month ended at 2.55 per cent (2.56 per cent).

Bonds: Bond prices edged up by 12 paise on hopes of a cut in the government borrowing programme following higher than expected advance tax collections. Total traded volumes on the order matching system were Rs3,990 crore (Rs3,220 crore).

G-secs: The 7.59 per cent-10 year-2016 paper opened at Rs99.97 (7.59 per cent YTM) and closed at Rs100.04 (7.58 per cent YTM) up from Monday's Rs 99.92 (7.6 per cent YTM). The 8.07-11 year-2017 paper opened at Rs 103.28 and closed at Rs103.35 (7.59 per cent YTM), against Monday's Rs103.23 (7.6 per cent YTM).

Call rates: Call rates ruled at 8.10-8.20 per cent against 8.15-8.25 per cent on Monday.

Reverse repo: In the first one-day reverse-repo auction under LAF, the RBI received and accepted one bid for Rs10 crore.

In the first one-day repo auction, it received and accepted 13 bids for Rs3,535 crore. In the second one-day reverse-repo auction, the RBI accepted and received five bids for Rs85 crore.

In the second one-day repo auction, it received and accepted 16 bids for Rs4,875 crore.

CBLO: The CBLO market saw 350 trades aggregating to Rs20,281.75 crore in the 7.20 per cent-7.75 per cent range.
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AIG Cap acquires leasing firm
Mumbai: AIG Capital India, a subsidiary of US-based AIG Capital Corporation, has agreed to buy a 75 per cent stake and management control in Chennai-based small non-banking finance company Vivek Hire Purchase & Leasing (VHPL). AIG Capital however, did not reveal the price it would pay for the latter. This is part of AIG India's plans to foray into consumer lending in the second-fastest growing economy.

VHPL accepts public deposits and finance purchase of refrigerators, air conditioners, office equipment, portable generators and two-wheelers and has about Rs100 crore of loan assets.

The transaction is expected to close in early 2007, as VHPL needs to seek the Reserve Bank of India's (RBI) approval being an NBFC which accepts deposits from the public.

VHPL is owned by the promoters of Vivek, a consumer durables retailer which will retain a 25 per cent stake in the NBFC.
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LIC launches unit linked endowment plan
Mumbai: Life Insurance Corporation of India has launched a unit linked endowment plan "Money Plus" which combines market related investment returns and an insurance cover. Policyholders up to 65 years of age can apply for the plan.

The minimum regular premium is Rs5,000 per annum and Rs 10,000 per annum in the case of single premium.

The policyholder has a choice between four funds - bond fund, secured fund (maximum investment in equity is 35 per cent), balanced fund (50 per cent) and growth fund (80 per cent).

Policyholders can make four free switches between funds in a year. Withdrawals are subject to a minimum lock-in period of three years. On the death of the policyholder, the sum assured or value of the units in the fund selected, whichever is higher, will be payable.
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Full float of rupee not necessary: Soros
New Delhi: George Soros, the billionaire investor and philanthropist said India need not immediately make the rupee fully convertible as capital controls could avert financial crises.

He also cautioned against overheating of the economy saying India has a booming economy and the the role of the authorities is to control it, so as to avoid excessive heating.

Soros made the remarks on a day when Thailand imposed currency controls on international investors.
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