August 21, 2012 / 7:52 AM / 5 years ago

MARKET EYE-Indian cash rates range-bound; liquidity still eases

* India's overnight cash rate dips slightly below the
repo rate to trade at 7.95/8.00 percent versus its Friday close
of 8.00/8.05 percent as most banks have already arranged funds
for their bi-weekly reserve needs.
* Banks' borrowing from the central bank's repo window also
falls to 360.70 billion rupees, its lowest in seven sessions,
reflective of the largely easy cash conditions. 
* Last minute demand from banks towards the end of the reporting
fortnight could push rates higher, though analysts don't expect
a big hike given the eased liquidity conditions. 
* Cash deficit is expected to remain within the RBI's comfort
zone until advance tax payments are paid in mid-September.
* Total volumes in the call money market were at 98.03 billion
rupees at a weighted average rate of 7.99 percent while those in
the CBLO market were at 308.08 bln rupees at a weighted average
rate of 7.96 percent.


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