Call MoneyThe overnight call money remained rangebound on Monday. The overnight call money opened at 9-9.05 per cent on Monday, eased a little in the afternoon to close in the region of 8.75 to 9 per cent.
Most deals were struck in the region of 8.75 to 9 per cent. "The call rates remained squarish due to adequate funds in the banking system," said a dealer from a nationalised bank.
According to market dealers, the rates witnessed easy trend as enough liquidity was reported in the system and the Reserve Bank of India repo auction bought in Rs 1800 crore which resulting in more liquidity and less demand during the later part of the day, dealers said.The Securities Trading Corporation of India's weighted average was 8.92 per cent on a total turnover of Rs 1700 crore. The discount and finance house of India extended market support to the tune of Rs 1500 crore, dealers said. Forecast-The.call rates are likely to remain rangebound on Tuesday.
Spot Dollar
The rupee opened at 39.53/56against the greenback, almost unchanged from its weekend's close at 39.52/54.The dollar was quoted at Rs 39.56 in early trades. Dealers said that heavy selling of the greenback at these levels saw the rupee appreciate to 39.47. "Corporate and inter-bank selling of dollars saw the Indian unit strengthen," a dealer with a brokerage said.Later-day demand for dollars from banks and corporates saw the rupee at 39.54 levels. Dealers said the State Bank of India and ONGC bought in the spot. "ONGC purchased nearly $40 million," a dealer with a British trade bank said. Profit-taking at 39.54 levels saw the Indian unit at 39.49 towards the close. The greenback's high for the day was Rs 39.55, while its low was Rs 39.49.Elsewhere, the Reserve Bank of India pegged its reference rate for the greenback at Rs 39.51.
FORECAST: The dollar is expected to be quoted in the Rs 39.40-39.60 band on Tuesday.Forward Premiums
Dull trades were witnessed in the forwards. There was no intervention by the Reserve Bank ofIndia. Forward premiums fell on supplies from exporters and poor demand from importers. "State Bank of India was seen receiving in the morning... this also helped push premiums down," dealers said. March premiums finished at 15/17 paisa, April at 53/66 paisa, May at 85/88 paisa and June at 122/125 paisa.The six-month annualised forward cover finished the day at 10.84 per cent as compared to the early levels at 11.16 per cent."Importers are adopting a wait-and-watch policy... greenback inflows are expected to improve after the formation of a new government at the centre," a corporate dealer in an European bank said.
FORECAST: Six-month annualised forwards are seen in the 10.80-11.05 per cent band on Tuesday.
Gilts
The prices in the government securities market fell by 30-40 paise on Monday. "Some selling pressure was seen in the short- and medium-term securities. However, not much action was seen in the long-term securities," a dealer from a private sector bank said.According to marketdealers, the government securities market is likely to remain dull for a couple of weeks. The wholesale debt market of the NSE witnessed trades worth Rs 169.83 crore.
The 11 per cent government loan maturing in 2002 was traded for Rs 20 crore at a yield of 11.99 per cent. The 14 per cent government loan maturing in 2005 was traded at a weighted yield of 12.17 per cent. The 364-day treasury bill maturing on April 24 was traded for Rs 55 crore at a yield of 11.63 per cent. A repo worth Rs 15 crore was transacted at 9.25 per cent. FORECAST: The government securities market is not likely to see much activity on Tuesday.
