November 8, 2012 / 7:42 AM / 5 years ago

MARKET EYE-Indian cash rates largely steady; banks borrow via repo

* India's overnight indexed cash rate little changed
at 8.05/8.10 percent compared to 8.05/8.15 percent at close on
Wednesday amid steady demand in the first week of the reporting
fortnight.
* Banks' borrowing from the repo window rises to 796.20 billion
rupees compared to 665.20 billion rupees on Wednesday as
investors try to borrow for the mandated reserve needs in the
first week of the reporting fortnight to avoid a scramble in the
holiday-shortened second week.
* All financial markets, barring a brief session on the stock
exchanges on Tuesday, will be closed on Tuesday and Wednesday
for local holidays.
* Traders expect cash rates to be around the current levels
throughout the fortnight as banks can comfortably borrow from
the central bank at its repo window at 8 percent due to higher
holdings of bonds that can be provided as collateral.
* Total volume in the call money market was at a low of 75.14
billion rupees at a weighted average rate of 8.07 percent while
that in the CBLO market was at 299.48 billion rupees at a
weighted average rate of 8.01 percent.

 (swati.bhat@thomsonreuters.com/;
swati.bhat.thomsonreuters.com@reuters.net)

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