Call MoneyThe reporting Friday saw the overnight call money rate crash to a low of 1.50-2.50 per cent. The call money rate opened in the region of 3-5 per cent in the morning, eased a little in the afternoon to close at around 1.50-2.50 per cent due to lack of borrowers in the market.
The call rate continued on an easy trend due to lack of demand and surplus supply. "Being a reporting Friday, the demand was far too little and liquidity was ample which eased the rates further," a dealer from a nationalised bank said. Around Rs 6,100 crore were diverted into the repos which resulted in the rate crashing to the 0.50 per cent level at one point, dealers said.
The STCI average was 2.58 per cent on a turnover of Rs 1,200 crore.
FORECAST: The overnight call money rate is likely to rule in the region of 8-9 per cent on Saturday.
Spot Dollar
The inter-bank forex market was dull on Friday. The Indian unit opened at 38.78 to the greenback, unchanged from its previous close.
Thegreenback quoted at 38.78 levels in early trading. The dollar moved in the Rs 38.79/80 band for most part of the day, dealers said.
"There was hardly any demand for the greenback," a dealer with a brokerage said.
The State Bank of India was not in the market today. On Thursday, SBI had made spot purchases.
The dollar's high for the day was Rs 38.80, while its low was Rs 38.67. At close, the greenback quoted at 38.76/77.
Meanwhile, the Reserve Bank of India fixed its reference rate for the greenback at 38.80, unchanged from its previous fix.
FORECAST: Rupee seen in the 38.75-38.80 band on Monday.
Forward Premiums
Longer term forward premiums closed stronger. The six-month annualised forward cover went at 14 per cent at close of trade.
February premiums finished at 8/9 paisa, March at 49/56 paisa, April at 108/115 paisa and May at 147/157 paisa.
The one-month annualised premium was quoted at 14 per cent levels, while the two-month cover went at 15 per cent.
In the longforwards, August premiums closed at 267/277 paisa, September at 306/321 paisa and October at 345/360 paisa.
Dealers said that dull trades were witnessed. "There was hardly any demand," said a dealer with a European corporate bank.
FORECAST: Six-month annualised cover seen in 13.98-14.05 per cent range on Monday.Gilts
The government securities market witnessed little activity on Friday. "There were hardly any sellers in the market. The securites market witnessed a mixed response for short- and long-term securities," a dealer from a private bank said.
According to dealers, uncertainty in the market is likely to continue for a few weeks more. The wholesale debt market of the NSE on Friday witnessed trades worth Rs 173.06 crore. The 12.5 per cent government stock maturing in 2004 was traded for Rs 50 crore at a weighted yield of 12.03 per cent. The 14 per cent government loan maturing in 2005 was traded for Rs 40.04 crore at a weighted yield of 12.24 per cent. The 365-days treasury billsmaturing on April 24 were traded for Rs 25 crore at a weighted yield of 12.25 per cent. Repo deals worth Rs 20 crore were traded on Friday.
FORECAST: The government securities market is likely to rule at the same level on Saturday.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
