Return
to Story Page
To print: Select File and then Print from your
browser's menu
Call Money
The overnight rates opened at 6.00-6.25 per cent on Wednesday compared with their previous close of 6.50-6.75 per cent. The call money rates quoted at the opening level throughout the morning. However, in the afternoon, the rates eased to finally settle at 5.90-6.10 per cent.
According to dealers, few traders were willing to lock their funds in the three-day five per cent fixed-rate repos despite the fact that there was ample liquidity in the system. The Reserve bank of India mopped up Rs 100 crore through the repos. The central bank received only one application and accepted it. The market witnessed a fairly easy trend owing to loose liquidity in the system and limited demand for funds, dealers said.
The Securities Trading Corporation of India turnover was to the tune of Rs 2,000 crore on a weighted average of 6.10 per cent.
FORECAST: The call rates are expected to rule between six and seven per cent on Thursday.
Spot Dollar
The spot rupee appreciated against the Call Money
The overnight rates opened at 6.00-6.25 per cent on Wednesday compared with their previous close of 6.50-6.75 per cent. The call money rates quoted at the opening level throughout the morning. However, in the afternoon, the rates eased to finally settle at 5.90-6.10 per cent.
According to dealers, few traders were willing to lock their funds in the three-day five per cent fixed-rate repos despite the fact that there was ample liquidity in the system. The Reserve bank of India mopped up Rs 100 crore through the repos. The central bank received only one application and accepted it. The market witnessed a fairly easy trend owing to loose liquidity in the system and limited demand for funds, dealers said.
The Securities Trading Corporation of India turnover was to the tune of Rs 2,000 crore on a weighted average of 6.10 per cent.
FORECAST: The call rates are expected to rule between six and seven per cent on Thursday.
Spot Dollar
The spot rupee appreciated against thedollar on Wednesday on expectations that the new export-incentive package announced by the commerce minister and proceeds from the Resurgent India Bonds will see the rupee strengthen.
The Indian currency appreciated by 6 paise over its previous close to 42.46 at the close of the day's trade.
Dealers said that the rupee opened at its previous closing level of 42.50/52 and stayed there for some time.
Corporate dollar-selling saw the rupee appreciate at noon to 42.46/47 before some dollar-demand saw the Indian unit dip to 42.50.
After the demand was met, the rupee appreciated to touch an intra-day high of 42.45 before closing at 42.45/46. Dealers said that demand for dollars was weak and there were enough supplies to meet the demand.
FORECAST: The rupee is seen between 42.40 and 42.50 on Thursday.
Forward Premiums
In the forward segment, premiums fell immediately after opening on Wednesday on expectations of an export-friendly package from the commerce minister.
"For most part ofthe day, the premiums tracked the spot rupee which appreciated," a dealer from a private bank said. Premiums fell drastically after the commerce minister cut rates for pre- and post-shipment credit. February premiums, which opened at 176/179 paise, appreciated at the close of trades to 165/168 paise. "SBI and most major banks were receiving. Some foreign banks were paying," a dealer from a private bank said.
The six-month annualised forward cover closed lower by 70 basis points at 6.90 per cent (7.6 per cent), the one-month one closed at 3.65 per cent (4.50 per cent), the three-month one closed at 5.5 per cent (6.1 per cent) and the one-year one (annualised) closed at 8.17 per cent, (8.50 per cent).
FORECAST: The six-month annualised forward cover is seen in the 6.8-7.2 per cent band on Thursday.
Gilts
The government securities marketwitnessed dull conditions on Wednes-day. Most banks did not take positions in order to subscribe to the Rs 2,500 crore four-year paper.
Some trades wereseen in the 11.55 per cent 2001 gilt as traders expect a lower yield for the new four-year paper.
The wholesale debt market of the National Stock Exchange witnessed trading worth Rs 300.40 crore. The zero coupon government bond maturing in 2000 was traded worth Rs 30 crore at a weighted yield of 10.97 per cent. The 11.55 per cent government loan maturing in 2001 was traded worth Rs 55 crore at a weighted yield of 11.46 per cent. The 14-day treasury bills maturing on August 15, 1998, were traded worth Rs 22.73 crore at a weighted yield of 6.15 per cent.
FORECAST: Prices in the government securities market are expected to remain at Wednesday's level on Thursday.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
------------------------------------------------------------
This story was printed from Net Express located at http://www.expressindia.com. Net Express provides a portal to India, with news from The Indian Express and The Financial Express along with sites on travel and tourism, the entertainment industry, the power sector, the environment and much more.
------------------------------------------------------------