Aditya Birla Capital

Aditya Birla Sun Life AMC Limited

Aditya Birla Sun Life AMC Limited

Treasury Connect - October 2019 - I

Treasury Connect - October 2019 - I

Nov 06, 2019
5 mins | Views 6809

Economic Update

The Reserve Bank of India (RBI) slashed the repo rate by 25 basis points (bps) to 5.15%, marking the fifth policy rate reduction in calendar year 2019.

India’s Consumer Price Index (CPI)-based inflation rose to 3.99% in September from 3.28% in August 2019; the wholesale price-based inflation eased to 0.33% in September as against 1.08% in August.

Debt Market Update

Systemic liquidity remained in a state of surplus during the period, the interbank call money rate settled at 4.95% on October 15, below the new repo rate of 5.15%.

Government bond prices ended higher. Sentiment for debt was supported as the Centre’s borrowing figures for the second half of fiscal 2020 stayed true to expectations.

Forex Update

The rupee weakened against the US dollar tracking decline in equities after the RBI lowered its domestic growth target for the fiscal.

Cooling crude oil prices and weakness in the dollar index following the release of some US economic data gave the local unit some support.

Regulatory Update

The RBI allowed domestic banks to offer foreign exchange prices to non-residents either by a domestic sales team or through their overseas branches.

The Securities and Exchange Board of India (SEBI) came out with a detailed framework for issuance of depository receipts through Gujarat International Finance Tec-City (GIFT City) exchanges.

All data mentioned above is as on 15th October, 2019

The above report is sourced from CRISIL Research, a division of CRISIL Limited (CRISIL) and Aditya Birla Sun Life Mutual Fund /Aditya Birla Sun Life AMC Limited does not guarantee the accuracy, adequacy or completeness of the Data / Report and is not responsible for any errors or omissions or for the results obtained from the use of Data / Report.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

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