10-year bond yield to ease by 8-10 bps

“The CRR cut will give a temporary relief to the system and 10-year benchmark bond is likely to hover around 8.15%-8.25% in the next week,” the IDBI Bank treasury head, Mr NS Venkatesh, said.

The yield on the 10-year government bond is likely to ease by 8 to 10 basis points this week in the wake of 75 bps cut in the Cash Reserve Ratio (CRR) announced by the Reserve Bank.

“There can be easing of around 8 to 10 bps in the 10 year G-Secs this week due to 75 bps CRR cut,” the Vijaya Bank executive director, Ms Subhalakshmi Panse, told PTI.

The Reserve Bank of India in a surprise move slashed CRR from 5.5% to 4.75%, which would infuse Rs48,000 crore into the system, after the markets closed on Friday.

The Central Bank of India chairman and managing director, Mr MV Tanksale, said the yield on the benchmark Government securities will go down as a result of the extra liquidity which gets generated.

The Oriental Bank of Commerce chairman and managing director, Mr SL Bansal, also said the move will lead to a cooling off in the short-term rates.

According to experts, the RBI’s step is likely to ease the tight liquidity situation a bit, which has seen around Rs1.5 trillion of borrowing by banks per day from the central bank’s overnight liquidity window.

“The CRR cut will give a temporary relief to the system and 10-year benchmark bond is likely to hover around 8.15%-8.25% in the next week,” the IDBI Bank treasury head, Mr NS Venkatesh, said. He, however, said future yields will depend on the Budget and its focus on fiscal consolidation.

“Steps that will be announced in the Budget regarding fiscal consolidation are vital and bond yield in the near-term will depend on that roadmap,” he said, adding that the fiscal deficit target for the next year will give important cue to the bond market.

“If the Government sets the fiscal deficit target at around 4.6%/ 4.8%, bond yield is likely to ease,” he said, adding anything beyond these numbers will see yield going up in the future.

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Car sales up 13% in February; customers fear price rise post-Budget

“People are expecting increase in car prices after the Budget as the government may roll back the 2% excise concession given as stimulus during the 2008-9 slowdown and additional taxes on diesel cars,” SIAM director general Vishnu Mathur told reporters

New Delhi: Car sales in India grew 13.11% to 2,11,402 units in February as customers rushed to buy vehicles fearing rise in prices post the Union Budget, to be presented this week, reports PTI.

“People are expecting increase in car prices after the Budget as the government may roll back the 2% excise concession given as stimulus during the 2008-9 slowdown,” Society of Indian Automobile Manufacturers (SIAM) director general Vishnu Mathur told reporters here.

He further said there is also an apprehension in the market that diesel cars may cost more after the Budget as additional taxes may be imposed on them.

“So, the growth witnessed in February was primarily driven by customers’ advancing their purchases ahead of the Budget,” he said, adding that there were also a lot of discounts being offered, mainly on petrol vehicles.

According to the figures released by SIAM today, domestic passenger car sales grew 13.11% to 2,11,402 units in February against 1,86,890 units in the year-ago period.

During February, the country’s largest car maker Maruti Suzuki India sold 94,118 vehicles, a jump of 7.13% over the same period last year.

Rival Hyundai Motor India’s sales grew by 12.78% to 36,658 units, while Tata Motors’ sales increased by 5.46% to 28,236 units.

Commenting on the market sentiments, Mr Mathur said, “There has been an improvement as consumers are no longer expecting increase in interest rates.”

This is the first time ever that the monthly car sales crossed the two lakh units mark, he added.

According to SIAM, total two-wheeler sales in February 2012 increased by 11.96% to 11,44,500 units, from 10,22,226 units in the same period of previous year.

Motorcycle sales in the country during the month grew by 8.01% to 8,38,193 units, from 7,76,005 units in the same month last year.

Market leader Hero MotoCorp witnessed a growth of 9.55% at 4,70,994 units compared to the same month a year ago, SIAM said.

Rival Bajaj Auto’s sales decreased marginally by 0.59% to 2,03,919 units from the same month last year.

Honda Motorcycle & Scooter India (HMSI) saw its bike sales going up by 39.05% to 75,110 units.

However, TVS Motor Company posted a decline of 6.8% in its sales at 49,067 units compared to year-ago month.

Scooter sales grew 27.99% to 2,37,374 units in February, as against 1,85,460 units in the year-ago period, SIAM said.

The growth in the segment was led by HMSI with a jump of 55.41% at 1,22,386 units during last month.

TVS Motor’s scooter sales were at 34,796 units, a decrease of 8.7%, while that of Hero MotoCorp went up by 19.49% to 39,464 units.

Total sales of commercial vehicles during February this year jumped by 18.7% to 76,891 units from 64,775 units in the year-ago period, SIAM said.

Light commercial vehicle sales rose by 31.02% last month to 43,982 units from 33,568 units in the same month in 2011. Medium and heavy commercial vehicle sales were up 5.45% at 32,909 units during the month from 31,207 units in the year-ago period, it added.

Three-wheeler sales during February 2012 were down 13.57% to 42,242 units compared to 48,878 units in the year ago period, SIAM said.

In February 2012, total sale of vehicles across categories registered a growth of 12.06% to 15,33,474 units in February 2012, as against 13,68,370 units in the same month of 2011.

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Aegon Religare Life Insurance launches flexi money back Insurance Plan

The plan offers a life cover that extends beyond the premium payment term; bonus that accrues from the first year onward; and regular income at specified intervals in addition to the maturity benefit.

Aegon Religare Life Insurance announced the launch of its Aegon Religare flexi money back Insurance Plan. This plan is meant for customers wary of investing in the volatile markets, looking for a simple insurance plan with guaranteed benefits. This plan offers a life cover that extends beyond the premium payment term; bonus that accrues from the first year onward; and regular income at specified intervals in addition to the maturity benefit.

On the launch of Aegon Religare flexi money back Insurance Plan, Yateesh Srivastava, chief marketing officer of Aegon Religare said, “This plan is aimed at customers who are seeking the comfort of guarantees in an uncertain investment climate and are looking for fixed paybacks at pre-determined intervals. The customer knows exactly what is receivable at the money back stage as well as at maturity. The plan has been launched based on our research that highlighted certain segments in the market. The product fulfils a very specific customer need for certainty in uncertain times.”

The plan offers a choice between three policy terms of 14, 17 and 21 years with a premium payment term of 12 and 15 years respectively.

The minimum entry age is 90 days and maximum age of entry is 60, 58 or 54 years, depending on the tenure of the policy. The maximum age at maturity is 75 years and minimum sum assured is Rs1,00,000.

For purchasing the plan, one needs to choose the level of protection (sum assured) and choose the policy term. Depending on these factors, the annualised premium is defined which can be paid annually, semi-annually or monthly.

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