Liquidity condition will remain easy this week
The level of funds in the banking system will continue to be comfortable this week even if the Reserve Bank of India (RBI) conducts some open market operation (OMO) auctions. According to dealers, the OMO auctions will be conducted to counter inflows on account of indirect dollar mop-ups by the central bank.
Dollar mop-ups will continue to be the chief source of liquidity during the week.
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With the liquidity good, bids at the repo auctions will continue to be high, between Rs 10,000 and Rs 15,000 crore.
Coupon inflows will be strong for the second consecutive week
The week will witness a net inflow of Rs 3,371.5 crore. Though this is marginally lower than last week