Liquidity conditions in the money market are alarming. The system’s liquidity, as measured by bids for repo through the Reserve Bank of India’s (RBI’s) liquidity adjustment facility (LAF), stood at over Rs 150,000 crore on 17 and 18 January 2012.
http://www.firstpost.com/blogs/rs-65000-cr-missing-money-rbi-needs-to-explain-liquidity-drop-187324.html?utm_source=MC_TOP_WIDGE
http://www.firstpost.com/blogs/rs-65000-cr-missing-money-rbi-needs-to-explain-liquidity-drop-187324.html?utm_source=MC_TOP_WIDGE
Andrew Holland, chief executive officer of equities at Ambit Capital tells CNBC-TV18 that the markets are primarily being driven by liquidity at the moment. He expects the rally in equities to fizzle out soon. "If the liquidity dries up, markets will correct meaningfully," he says.
Holland says that Ambit Capital's strategy will be to short equities on every rise going forward.
