October 1, 2014 / 11:54 AM / 3 years ago

MARKET EYE-India cash rates fall, liquidity remains comfortable

* India's six-day cash rates end at 7.40/7.50 percent,
versus 8.05/8.15 percent for one-day funds on Tuesday.
* Financial markets to remain closed from Thursday to Monday for
local holidays. Trading resumes on Tuesday.
* Traders say month-end government spending aiding liquidity.
* RBI's forward positions rollover also adding to cash in the
market at month-end.
* Surplus funds from banks' half yearly book closing also being
reflected in the banking system.
* Call rate to move back towards the repo rate of 8 percent at
the start of the new reporting fortnight on Tuesday, traders
say.

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

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