MARKET EYE WEEKAHEAD - Cash crunch, share sale key for India debt/fx
REUTERS - India's debt markets will likely focus on the cash situation with the government clamping down on spending. Repo bids are hovering over 1 trillion rupees and dealers will look at the possibility of any open market operations.
The cut in cash reserve ratio (CRR) will become effective only on February 9, injecting 180 billion rupees of liquidity in the system.
The rupee is expected to hold in a 52.50 to 53.70 broad range to the dollar next week.
Dollar inflows towards the stake sale in NTPC Ltd (NTPC.NS) is expected to keep the rupee in a bullish mode. Traders will be watching the non-farm payrolls data due to be published post market hours on Friday for opening cues on Monday.
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India has withdrawn the drug pricing authority's powers that allowed it to fix the prices of medicines not deemed essential, after its decision to impose price caps on more than 100 drugs in July triggered industry protests. Article