Govt raises Rs 270bn till May 27

The government has raised Rs 27,000 crore from the market till May 27 this fiscal and is scheduled to borrow Rs 10,000 crore this week.

"The government has completed gross borrowings to the tune of Rs 27,000 crore against annual budgeted gross borrowings of Rs 1,39,467 crore in 2005-06," PNB Gilts said in a report.

During the last fortnight, the government had raised Rs 4,000 crore from market through 17-year papers bearing a interest rate of 8.35%.

As per borrowing calender, the centre will raise Rs 4,000 crore through 15-19 year papers and Rs 6,000 crore through 5-9 years in the first week of June.

Though global factors remain soothing, the domestic fundamentals do not share the same optimism and the outlook for the debt market remains cautious, it said.

"Recent developments suggest that government is not likely to leave oil prices at current levels for long. Consumer fuel prices have been left unchanged since November last, causing unbearable strain to oil companies," PNB Gilts said.

However, on the positive side, it said high base-effect is likely to cushion the spurt in WPI following the imminent fuel price hike.