STCI Primary Dealer Ltd.

Products

Skip Navigation Links.
 

STATE DEVELOPEMENT LOANS

 
State Development Loans, or SDLs, as they are colloquially called, are issuances of the respective states in order to manage their own state finances. The structure and nature of SDLs is broadly similar to that of a fixed rate Dated G-Sec. However, these instruments are generally issued for maturities upto 10 years. Also, reissuances of SDLs are extremely rare. In other words, generally, every SDL auction is an auction of a new SDL security and therefore, the auction process is yield based.

Generally, as SDLs have the backing of the respective states, depending on the fiscal health of the states and the consequent risk element associated in such investments, SDLs are traded at a spread above the benchmark G-Sec security. Liquidity of these securities is yet another factor that has a bearing on SDL valuation. However, investment in SDLs may be a good option for investors seeking to earn higher coupons.

As in Dated G-Sec, institutional player dominate this segment. Foreign flows too, have been permitted in SDLs. Non-competitive bidding is allowed in SDLs to the extent of 1% of the notified amount. The trading and settlement mechanism for SDLs remains the same as in case of Dated G-Sec.

STCI PD has been one of the most active players in the debt market. Apart from participating in SDL auctions on proprietary basis, we also accept Competitive and Non-Competitive bids from clients, thereby benefitting them with wider access to debt market. We also, consistently provide two way quotes in all debt securities.

Clients interested in placing bids in Primary auctions and/or buying/selling SDL securities may contact our Sales Personnel on 022-66202224/25/28. We endeavor to provide the best possible returns to our clients, keeping in line with their overall investment objectives.
 
 

Latest News

In its Fifth Bi-Monthly
In its Fifth Bi-Monthly Monetary Policy for FY19, the MPC-panel maintained ‘status quo’. Consequently, key policy rates remained unchanged - Repo rate at 6.50%, Reverse repo at 6.25% and MSF at 6.75%.
--------------------------------------------------
Inflation projections for
Inflation projections for 2018-19 were revised downwards as food inflation has remained benign. It is projected at 2.7%-3.2%% in H2 FY19 (3.8%-4.5% previously) and 3.8%-4.2% in H1 FY20.
--------------------------------------------------
Growth for FY19
Growth for FY19 is projected at 7.4% with 7.2%-7.3% in H2 FY19 (7.3%-7.4% previously). Growth in H1 FY20 is projected to stand at 7.5%.
--------------------------------------------------
Belying market expectations, CPI for Nov-18
Belying market expectations, CPI for Nov-18 stood at a 17 month low of 2.33% vis-à-vis 3.38% (3.31% previously) observed in the previous month aided by a strong favorable base and continued moderation in food inflation. However, core CPI edged higher to 6.18% from 5.81% in the previous month.
--------------------------------------------------
Industrial production witnessed a sharp rise
Industrial production witnessed a sharp rise of 8.1%in Oct-18 vis-à-vis 4.5% in Sep-18. On sequential basis, upward momentum was observed across sectors with Mining at 14.2%, Electricity at 1.9% and Manufacturing at 1.6%.
--------------------------------------------------
Wholesale inflation for Nov-18
Wholesale inflation for Nov-18 came in at 4.64%, lower than 5.28% registered in Oct-18. Despite inflationary pressures from food items, lower fuel prices and a favourable base effect led to this downtick in inflation. Consequently, core WPI inched down to 4.88%, as compared to 5.15% in Oct-18
--------------------------------------------------