The rupee may depreciate 10% versus US dollar as weakness in other Asian currencies converges with India's fragile external economy.
The govt may be closer than ever to raising the cap on foreign investors’ ownership of Indian bonds as their current holding is close to the limit.
"The bonds should go through without much trouble," said one of the three arrangers of the issue, who didn't wish to be named.
Some hope for easing of liquidity pressure in the coming fiscal year, but the relief may not be much.
Bharti Airtel International (Netherlands), a subsidiary of Bharti Airtel, has raised $500 million through dollar bonds with a coupon of 5.043%.
A revival in infrastructure investment does not seem to be anywhere on the horizon, despite a slew of policy measures by the govt.
Infrastructure, once a darling of banks and equity investors, has been the worst hit by the slowdown and is no longer favoured.
The yields on benchmark ten year government bonds rose 3 basis points, as Reserve Bank signaled scope for future rate cuts is limited.
The Indian rupee fell to 54.30 per dollar, losing about 0.6 per cent after the Reserve Bank of India cut the repo rate by a quarter per cent.
FM’s austerity drive to save investment-grade rating and keep his promise on reining in fiscal deficit, has led to an avalanche of corporate rating downgrades.
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