CP, CD rates dip; short-term deposit-rate cut on the cards
The rates of commercial papers (CPs) and certificates of deposit (CDs) dipped by 50 basis points yesterday even as banks were drawing up plans to pare short-term deposit rates following the 50-basis-point cut in the bank rate. The Reserve Bank of India (RBI) on Wednesday cut the bank rate to 10.5%, reversing its tight money policy announced on January 16.
NSE cuts V-Sat security deposit
The National Stock Exchange (NSE) has unveiled a two-pronged move to increase the number of terminals installed at the bourse. On the one hand, the exchange has decided to bring down the security deposit payable by a member for installation of a V-Sat connection to Rs 3.25 lakh as against Rs 5 lakh payable earlier.
Mumbai bourse to shift over 50 B2 scrips to B1 group next month
The Bombay Stock Exchange (BSE) has decided to promote over 50 stocks from the non-specified B2 group to the B1 group. This is the second upgradation that will be carried out by the exchange in the current year.
Dip in forex reserves may push up interest rates by 100 basis points
The interest rates for the first half of the next fiscal (April-September, 1998) are likely to move up by about 100 basis points on an average. According to the interest-rate scenario outlined by I-Sec's debt market expert Ashish Pithale, the yield on the bench-mark, 10-year government paper is will move up by 90 basis points.
Nasdaq, American Stock Exchange boards approve merger
The Nasdaq stock market's parent and the American Stock Exchange approved a merger they said would move them into the 21st century and preserve Wall Street's dominance as the world's financial capital. The two markets will continue to operate separately. But their alliance would offer companies and investors the benefit of trading stocks either over the Nasdaq's electronic trading system or in the Amex's floor-based auction market.
Sensex drops 4 points to close at 3,820
The swearing-in of the new government brought in mixed reaction among market participants. The 30-share Bombay Stock Exchange (BSE) Sensitive Index moved in the band of 3,802.50 and 3,852.50 points, the intra-day's low and high respectively, to finally close at 3,820.87, a loss of 4.15 points over Wednesday's close.
