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Call Money
The overnight rates opened at 6.25-6.50 per cent on Thursday compared with their previous close of 5.90-6.10 per cent. The call rates quoted at the opening levels throughout the morning. However, the rates eased in the afternoon on dearth of demand for funds and finally closed at 6.00-6.25 per cent.
Almost all the traditional lenders were present in the call money market.The Reserve Bank of India mopped up Rs 2,600 crore through three-day fixed-rate repos in Government of India dated securities. The central bank received two applications and accepted both of them. "There is ample liquidity in the system though it is confined in the hands of few," said a money market dealer.
FORECAST: The call rates are expected to hover around 6.50-7.50 per cent on Friday.
Spot Dollar
The rupee held steady against the dollar in a moderately active market on Thursday. The Indian currency opened at 42.43, a tad stronger than its previous close of 42.46. Later, corporate demand for Call Money
The overnight rates opened at 6.25-6.50 per cent on Thursday compared with their previous close of 5.90-6.10 per cent. The call rates quoted at the opening levels throughout the morning. However, the rates eased in the afternoon on dearth of demand for funds and finally closed at 6.00-6.25 per cent.
Almost all the traditional lenders were present in the call money market.The Reserve Bank of India mopped up Rs 2,600 crore through three-day fixed-rate repos in Government of India dated securities. The central bank received two applications and accepted both of them. "There is ample liquidity in the system though it is confined in the hands of few," said a money market dealer.
FORECAST: The call rates are expected to hover around 6.50-7.50 per cent on Friday.
Spot Dollar
The rupee held steady against the dollar in a moderately active market on Thursday. The Indian currency opened at 42.43, a tad stronger than its previous close of 42.46. Later, corporate demand fordollars saw the rupee hit an intra-day low of 42.52. "The greenback was bid aggressively in early trades," said a dealer with a European corporate bank. Profit-taking in later trades saw the rupee gain to 42.51/52 before closing at 42.48/40."Wednesday's announcements of concessions and incentives on the export front have not changed sentiment as of now," dealers said.
Cash/spot quoted at 0/.025 paise and cash/tom at 0.05/1 paise.
Elsewhere, the Reserve Bank of India pegged its reference rate for the dollar at 42.49 compared with its previous peg of 42.47.
FORECAST: The rupee is seen in the 42.45-42.53 band on Friday.
Forward Premiums
Forwards, on Thursday, fell by 5-6 paise across all maturities in intra-day trades from their opening levels, but inched higher by the close.
"Premiums fell in early trades as exporters were expected to receive...but a bit of softening in the forwards was arrested with importers coming in to cover," a dealer with a brokerage said.
January premiumsclosed at 137/140 paise, February at 168/172 paise, March at 204/208 paise and April at 240/244 paise. "Forward premiums went upon paying pressure. The State Bank of India was seen receiving in December, January and February," dealers said.
The six-month annualised forward cover ended at 6.96 per cent (6.90 per cent) and the one-year one at 8.33 per cent (8.17 per cent).
FORECAST: The six-month annualised forward cover is seen at 6.95-7 per cent on Friday.
Gilts
Prices of short-dated government securities appreciated by 5 paise to 10 paise on Thursday morning following the successful subscription of the four-year government paper. However, the prices fell by 5 paise in the afternoon.
According to dealers, the new four-year government loan was traded at a premium. "Most deals were struck between Rs 100.15 and Rs 100.20," a dealer said. Most banks bought the new four-year paper, market sources said. "Some demand was also witnessed in the two- and three-year papers," dealers said.
Thewholesale debt market of the NSE witnessed increased trading worth Rs 814.14 crore. The newly issued 11.68 per cent government loan maturing in 2002 was traded worth Rs 223 crore at a weighted yield of 11.61 per cent. The 11.55 per cent government loan maturing in 2001 was traded worth Rs 194 crore at a weighted yield of 11.41 per cent.
FORECAST: Prices in short-datedgilts are expected to appreciate onFriday.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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