Re at 9-yr high
Mumbai: The rupee crossed the psychological level of 42 and surged to a near nine-year high of 41.90/91 on strong capital inflows. The rupee strengthened by 60 paise against the dollar from its previous close of 42.51/52 on Friday and touched an intra-day high of 41.85 which was last seen around June 1998.

The RBI was conspicuous by its absence since it usually buys dollars with rupees through public sector banks to rein in a rising rupee. The central bank's absence suggests its reluctance to add to the sum of rupees in the system and add to inflation dealers said.

Bonds: Bond prices dropped by around 2 paise. Dealers said the first phase of the CRR hike to 6.25 per cent came into effect on April 14, and has drained the excess cash from the system. Banks borrowed over Rs13,800 crore from the Reserve Bank of India through the repo window.

G-secs: The 8.07 per cent-10 year-2017 paper opened at Rs99.93 (8.08 per cent YTM) and closed at Rs99.78 (8.10 per cent YTM) against Rs99.80 (8.10 per cent YTM) on Friday.

The 7.38 per cent- 8-year-2015 paper opened at Rs95.35 (8.16 per cent YTM) and closed at Rs95.05 (8.21 per cent) against Friday's close of Rs95.30 (8.16 per cent YTM).

Call rates: Call rates closed higher on Monday at 9.50-10.50 per cent against the previous close of 5- 5.25 per cent.

Reverse repo: In the first one-day reverse repo auction, RBI received and accepted two bids for Rs210 crore. In the first one-day repo auction, RBI received and accepted one bid for Rs400 crore. In the second one-day reverse repo auction, RBI received and accepted one bid for Rs10 crore. In the second one-day repo auction, RBI received and accepted 34 bids for Rs13,415 crore.

The CBLO market saw 424 trades aggregating Rs16,747.75 crore in the 3.05 per cent-9.50 per cent range.
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IFC acquires stake in Cairn India
New Delhi: International Finance Corporation (IFC), the private lending arm of the World Bank, recently acquired seven million shares in Cairn India for about $20 million. Sources this amount was over and above the $850 million loan IFC extended to Cairn India with 10 other banks and financial institutions for development of the Rajasthan oilfields.

Following the flotation, Cairn Energy owns 69 per cent in Cairn India, Petronas holds 10 per cent, LIC four per cent, and the remainder is with other institutions and individual shareholders. Cairn India has raised Rs8,616 crore from its IPO.

Cairn plans to begin oil production from its Rajasthan blocks in early 2009. The company expects an output of 1,50,000 barrels per day. ONGC has a 30 per cent stake in an oil and gas block in Rajasthan, where Cairn Energy holds the remaining stake and is the main operator. IFC and Cairn propose to invest in number of community projects in Rajasthan.

Cairn India's primary asset is a 70 per cent working interest in a development area in Rajasthan. In January 2004, it discovered the Mangala oil field.
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Indiabulls Financial Services net profit surges
Mumbai: Indiabulls Financial Services has reported a 209 per cent increase in its standalone net profit for the fourth quarter ended March 31, 2007.

Net profit for the quarter rose to Rs68.49 crore from Rs22.12 crore in the corresponding year-ago quarter. For the year ended March 31, 2007, net profit, at Rs153 crore (Rs74.26 crore), doubled from the previous fiscal, while total revenues, at Rs353.7 crore, rose 67 per cent. On a consolidated basis, profit after tax rose 75 per cent to Rs443.4 crore (Rs253.4 crore) while total revenues rose 103 per cent to Rs1,244.4 crore (Rs613.2 crore). Financing income rose 149 per cent, to Rs719 crore; brokerage and capital market related income rose 29 per cent to Rs404 crore; and fee-based income rose manifold to Rs117.7 crore.

The board has recommended a final dividend of Re1 per share, taking the total dividend for the year to Rs3 or 150 per cent.

Indiabulls Financial Services has completed the acquisition of the minority interests in its mortgage subsidiary, Indiabulls Housing Finance Ltd, completing its ownership to 100 per cent.
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