Market Round-up
Call MoneyOvernight rates opened in the 6.5-7.00 per cent band on Friday from its previous close at 7.25 levels. Dealers said that in later trades call rates eased to 5.5-6.5 per cent.Most of the trades were struck in the region of 5.5-6.5 per cent, the Securities Trading Corporation of India said. At close, overnight rates were seen at 5.5-6.00 per cent. Dealers said that trade transactions were nil on account of reporting Friday. Few banks were seen borrowing and demand was at a low ebb. "In the afternoon session, a couple of transactions took place around 2 to 3 per cent," said a dealer. Meanwhile, the Reserve Bank of India (RBI) accepted seven bids for Rs 995 crore at its three-day fixed rate repos at 7 per cent. On Saturday, the central bank will hold a three-day fixed rate repos at 7 per cent. FORECAST: Call rates to open in the range of 8.00 to 9.00 per cent on Saturday. Spot Dollar The Indian unit opened today at 39.23/25 to the greenback, almost unchanged
from its Thursday's close at 39.22/23. In later day trades, the rupee went lower and was quoted at 39.27. "Good corporate demand for dollars weakened the rupee to 39.27 levels from its opening quote at 39.22/25," said a dealer with a brokerage. Dealers said that the greenback was quoted in the Rs 39.23-Rs 39.27 band till mid-day.Most of the trades were done on the Rs 39.25-39.26 to the greenback. The greenback's high was Rs 39.33 while its low was Rs 39.23. At close, the dollar was quoted at 39.30. The Reserve Bank of India (RBI) today fixed its reference rate for the greenback at Rs 39.26 from its Thursday's fix at 39.23. FORECAST: Greenback seen in the Rs 39.25-39.35 band on Monday. Forward Premiums The Reserve Bank of India (RBI) intervened in the near-term forwards today. The six-month annualised forward cover closed at 7.16 per cent from its Thursday's close at 7.17 per cent. "The central bank did buy/sell swaps for March, April and June maturities," said a dealer with a
European bank. March dollars finished at 61/66 paisa, April at 86/91 paisa and July at 159/166 paisa. Profit-taking saw forward premiums weak. The six-month annualised forward was seen at 7.24 per cent levels in trades after opening. There was a sudden upturn in the six-monthly forward later. "It was quoted at 6.95 per cent at one point," said a dealer with a European corporate bank. Dealers said that the covering is more in the near-terms, but good dollar supplies seem to be in the longer maturities. FORECAST: Six-month annualised forward cover seen in the 6.75-7.01 per cent band on Monday. Gilts Trading was seen in the 12.14 per cent 2000, 10.85 per cent 2003, 11.83 per cent 2003 and the 12.50 per cent 2004 stocks. Dealers said that in the government securities market, prices on medium-term paper rose by about 30-40 paisa in the morning session to come down in the second session by 20-30 paisa. "Outflows of Rs 995 crore on account of Reserve Bank of India's three-day repos
today saw securities prices firming up," said a dealer with a private-sector bank. Many dealers said that they kept away. "There was little trading interest today," said a broker. The National Stock Exchange (NSE) said that the BBS system was not available today. FORECAST: Security prices to firm up on Saturday.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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