CALL MONEYThe overnight call money rates ruled easy on Thursday. The call rates opened at 9-9.05 per cent as compared with Wednesday's close of 10-10.50 per cent. The rates eased in the afternoon to close at 7-8 per cent, dealers said.
"The call market remained easy on Thursday due to surplus funds in the market. Most lenders were seen lending in call as they did not feel the need to block their funds in the Reserve Bank of India four-day fixed-rate repo," a dealer from a nationalised bank said. According to market dealers, lenders expect the call rates to rule high on Saturday as compared to the RBI repo rate.
The RBI mopped up Rs 891 crore through its four-day fixed-rate repo in government of India dated securities. The central bank received six applications and accepted all of them.
FORECAST: The overnight call money rates are likely to hover around 9-9.50 per cent on Saturday.
SPOT DOLLAR
The rupee opened at 39.49 against the greenback, almost unchanged from its previous close of 39.48. Dealers said that the State Bank of India (SBI) bought spot dollars.
Trades in the inter-bank market continued to be dull with uncertainty at the centre. State Bank of India spot purchases of the greenback were contracted at 39.50-39.51, a dealer with a European corporate bank said.
The dollar's high for the day was 39.52, while its low was 39.49. At close, it was quoted at 39.50.
Meanwhile, the Reserve Bank of India fixed its reference rate for the dollar at 39.51 as compared with its previous fix at 39.53.
FORECAST: The rupee is expected to be traded in the 39.48-39.50 band on Monday.
FORWARD PREMIUMS
Forward premiums came off a bit from their previous closings in dull trade. The six-month annualised forward cover closed at 10.85 per cent as compared with its opening level of 10.75 per cent.
March premiums finished the day at 14/16 paise, April at 88/90 paise, May at 88/90 paise and June at 124/126 paise.
The State Bank of India was seen receiving May, June, July and August premiums, dealers said. August premiums were seen earlier at 201/206 paise and they finally closed at 194/197 paise.
A few exporters were also seen receiving premiums, but importers were off the market.
"The market continues to be largely driven by the State Bank with its receiving," a dealer with a European bank said.
FORECAST: The government-formation at the centre to hold the key. The six-month annualised cover is seen in the 9.75-10.20 per cent range on Monday.
GILTS
The government securities market remained subdued on Thursday. Prices in the securities market fell by 20-30 paise, market dealers said.
According to dealers, some trading was seen in the short-term treasury bills and short-dated securities, whereas trading in the medium- and long-dated securities remained subdued.
The wholesale debt market of the NSE witnessed trades worth Rs 22.05 crore. The 13.05 per cent Madhya Pradesh State Development loan maturing in 2007 was traded for Rs 10 crore at a yield of 12.20 per cent.
The 364-day treasury bill maturing on April 24 was traded at a weighted yield of 11.75 per cent.
FORECAST: The government securities market is not likely to see much activity on Thursday.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
