The Financial Express -- Markets

Tuesday, May 27 1997

Carryforward norms likely to be diluted

Bombay Stock Exchange president M G Damani has made a forceful plea for the reintroduction of badla with fewer restrictions, even as the J R Verma committee is collecting feedback from the exchanges.

Infrastructure Bond Issue

RBI likely to award 3-yr bonds around 12%

The Reserve Bank of India is likely to award the coupon on three-year bonds around 12% at Wednesday's auction. Though the market expectations on the bonds are in the region of 12.15-12.25%, primary dealers are seen aggressively bidding at lower coupons. The sudden keenness shown by PDs is because this is the last opportunity for them to get the 1% incentive (Re 1) on government bonds from the RBI.

Income funds pick up short-term paper

Income funds which were caught off-guard by falling interest rates are trying every possible way to make sure that they honour the promise of paying 15% made to the investors. Some are parking their funds in short-term instruments in the hope that they can shift the funds to papers with better yields when the opportunity comes their way.

Mark weakens against $

Buy/sell/hold

Edible oils dip on weak demand; sugar firm

Behind the screen -- BoI bears run for cover

The 164-trap