Govt completes borrowings of Rs 95,000cr

The government's market borrowing has plummeted by over 27% to Rs 95,000 crore till January 7 this fiscal compared to Rs 130,500 crore raised in the year-ago period.

"Government has completed Rs 95,000 crore of its market borrowings, constituting 63.05% of gross budgeted borrowings of Rs 1,50,681 crore," PNB Gilts said in a report.

Net borrowings after redemption of securities worth Rs 55,316 crore, fell by 57.34% to Rs 39,684 crore till January first week compared to Rs 93,032 crore in the previous year period.

During the fortnight ended January 7, centre mopped up Rs 4,936 crore and Rs 1,936 crore through 7-year and 30-year papers.

On the short term outlook, PNB Gilts said debt markets remain positive and inflation is likely to ease to sub-6% levels in January.

With improved outlook on inflation, any pressure on the reserve bank to maintain tight liquidity is likely to subside.

However, it said profit-booking and strengthening of dollar ahead of Federal Open Market Committee and Opec's meet is likely to induce a cautionary stance.