MARKET EYE-India OIS lower; fuel price hike awaited

Tue Sep 11, 2012 11:50am IST

* India 1-year rate falls 1 bp to 7.74 percent,
while 5-year OIS rate down 2 bps to 7.17 percent.
* Dealers await outcome of cabinet panel meet, scheduled at 1745
local time, with media reports citing fuel price hike may be on
agenda.
* Bond market looking at any possible price hike in domestic
fuel prices as positive as it will be a signal towards fiscal
consolidation.
* RBI has said it will act on rates only when the government
takes steps to address its large fiscal gap.
* Cash beginning to tighten in advance tax outflow week with
repo bids rising to 513.90 billion rupees from a near year-low
of 21.20 billion rupees last week. 

 (subhadip.sircar@thomsonreuters.com;
subhadip.sircar.thomsonreuters.com@reuters.net)