印度流动性盈余收缩，隔夜借款成本升至RBI政策利率上方

Good morning...

I’m Pratigya Vajpayee in Mumbai, and AI is taking center stage across global markets today.

Anthropic, the company behind Claude, filed for its long-awaited IPO, a landmark moment in the artificial-intelligence industry which is growing ever hungrier for cash to power ahead. Adding to the excitement is a trio of mega AI financing deals from Meta, Broadcom and SpaceX. No surprise, then, that tech stocks in Asia are rallying hard, tracking gains in their Wall Street peers.

For India though, the AI party may feel a little out of reach, given the market’s limited exposure to the theme. Traders will likely be more focused on earnings, with some big names like Maruti Suzuki, Larsen, Bajaj Auto and Cipla due to report results today. Shares of Tata Steel, Tata Capital and Waaree Energies will be in focus after their earnings.

Beyond equities, there’s a shift in money markets worth watching: overnight borrowing costs in India are rising as banking system liquidity ebbs. We bring you more on that in the ‘Markets Buzz’ section below.

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Overnight borrowing costs have climbed well above the RBI’s policy rate as banking liquidity surplus has dwindled to a little above 500 billion rupees from a record 11 trillion rupees last month. Despite the shrinking cash pile, the RBI has so far injected only moderate amounts of cash through its short-term liquidity operations, which have been insufficient to cool off borrowing costs. It increasingly seems that the RBI is keeping the cost of funds elevated, with the aim to support the rupee by making it more expensive to bet against the currency. This would be in line with Governor Sanjay Malhotra’s recent remarks that alluded to the use of monetary policy to curb financial stability risks.