RBI8217;s Rs 4000 cr issue devolves

The 12.50 per cent 2004 opened at Rs 104.40 levels, fell to Rs 103.80 and rallied to Rs 104.25, by close, this security was quoting at Rs 104.85. quot;This was on account of the general bouyancy in prices after the Reserve Bank placed the 11.90 per cent 2007 on its purcahse window at Rs 104 when the prevailing of this bond was around Rs 103,quot; a market analyst with a primary dealership said.

There is feeling that liquidity may tighten if the Reserve Bank8217;s measures announced on Friday continue to be in place for long, dealer said. On Friday The Reserve Bank had hiked the bank rate by 100 basis points to 8 per cent while the CRR was hiked by 50 basis points to 8.50 per cent after the rupee fell to an all-time low of Rs 45.07/08 against the dollar. The Reserve Bank also slashed the eligible refinance limits for banks by 50 per cent.