Call MoneyThe call money market lacked activity, today being the reporting Friday. The rates opened at 9-9.10 per cent and dipped to 8.75 with ample loose liquidity in the system to meet borrowers' requirement. The rates hovered below the Reserve Bank of India repo rate of 9.00 per cent for most part of the day.
As most banks had covered up their positions for the fortnight trading, there was only low key activity, dealers said.
Banks report their reserves position to the Reserve Bank of India every alternate Friday. The Discount and Finance House of India extended market support of over Rs 2,200 crore, while the Securities Trading Corporation of India business turnover amounted to Rs 1,900 crore, official sources confirmed.
STCI's weighted average call money reference rate was 8.82 per cent.
FORECAST: Call rates are likely to remain rangebound to the RBI's repo rate of 9 per cent on Monday.
Spot Dollar
The Indian unit opened at 39.25/28 to the greenback on Friday, almostunchanged from its previous close at 39.25/27. The SBI bought spot dollars towards the close of trades.Trades were dull on account of month-end.The greenback was quoted in a narrow range of Rs 39.28/30 till mid-session.
Interest for dollars at this point saw the rupee at 39.32/33. The SBI made small spot purchases late in the day. The SBI's entry to buy spot dollars saw the Indian unit close weaker at 39.34/35.
On Thursday also, SBI had made spot purchases.The greenback's high for the day was Rs 39.35, while its low was 39.25/28. The Reserve Bank of India pegged its reference rate for the dollar at Rs 39.30 against its previous fix at Rs 39.27.
FORECAST: Rupee seen weaker at 39.35-40 levels on Monday.
Forward Premiums
Premiums firmed up slightly on Friday, but the six-month forward cover closed stronger at 14.01 per cent. The Reserve Bank of India( RBI) was not in the market, but the State Bank of India was seen receiving, dealers said.March premiums closed at 35/37 paisa, April at94/97 paisa, May at 139/142 paisa and June at 187/191 paisa.
The one-month annualised forward premium finished at 11.07 per cent, while the two-month annualised cover went at 15.03 per cent.
"There was hardly any activity today," said the treasury head of a European corporate bank. TheSBI was seen receiving March and July premiums.
FORECAST: Six-month annualised forward premium seen at 13.97-14.05 per cent levels on Monday.
Gilts
The government of India securities market remained subdued, but short-dated securities evoked some enquiries on Friday. The volumes in the government securities market were slightly higher than the previous days of the week.
In the treasury bills segment, bills maturing on April 24 were quoted at around 12.30-12.40 per cent and those maturing on April 10 at 11.60-11.70 per cent.
The wholesale debt market segment of the National Stock Exchange witnessed trades worth Rs 267.82 crore. The eleven per cent government loan maturing in 2002 was traded for Rs 90crore at a weighted yield of 12.37 per cent.
The 364-days treasury bill maturing on April 24, 1998 was traded for Rs 65 crore at a weighted yield of 12.37 per cent. Repo trades worth Rs 20 crore were transacted.
FORECAST: Secondary market for government securities to remain dull on Monday.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
