Call rates remained rangebound on Wednesday. The overnight rates opened at 8 per cent to 8.25 per cent and closed at 8.25 per cent, unchanged from the previous close. The call money market witnessed listless trading as most of the players stayed away from the market due to the half-yearly closing on Wednesday. "Trades were dull as there was not much demand for funds in the market and the two public holidays starting from Thursday," dealers said. About Rs 1,269 crore moved out of the system through a three-day fixed rate repo. There were no inflows into the system through repo reversals. The two public holidays beginning Thursday, the interbank money market saw both the three-day call money and five-day money rates at 8 per cent to 8.25 per cent. The NSE's Mibid and Mibor quoted at 8.18 per cent and 8.38 per cent, respectively.
FORECAST: Call rates are seen at 8-8.25 per cent on Saturday

Spot Dollar

The forex market was closed on Wednesday on account of the half-yearlyclosing. The market will remain closed for the rest of the week on account of public holidays. On Monday, the rupee opened weaker by 2 paise against the dollar owing to month-end dollar demand. The Indian currency opened at 42.53/54 and appreciated towards the close to 42.51/52 on Monday. The rupee appreciated on Tuesday as market sentiment improved on news that the US was likely to waive the economic sanctions imposed on India for a year. The rupee move up by 6 paise to 42.46/48 against the dollar. It opened at 42.51/52, appreciated to 42.46/49 and finally closed at 42.45/46. "The rupee is not expected to depreciate during the forthcoming week," dealers said.
FORECAST: The rupee is seen at 42.46/55 on Saturday

Forward Premiums

The forward market was closed on Wednesday due to the half-yearly closing. The market will be closed for the rest of the weekdue to the public holidays. In the last two days, forward premiums softened due to high receipts and lower import bookings. On Tuesday,near-term forward premiums eased by 1-4 paise and far-end premiums fell by 5 paise to 6 paise as a few exporters received in forwards. The six-month annualised premium quoted at 7.42 per cent (7.69 per cent), three months at 6.42 per cent (6.82 per cent) and one month at 6.12 per cent on Tuesday. The October premium quoted at 15-17 paise (16-19 paise), November at 38-41 paise (40-44 paise), December at 62-65 paise (65-70 paise), January at 90-93 paise (94-98 paise) and February at 119-122 paise (123-128 paise).
FORECAST: The six-month annualised forward premium is seen at 7.40-7.48 per cent on Saturday

Gilts

The gilts market remained dull on Wednesday on account of half-yearly closing. "Only 3-4 deals of very small quantums were done on Wednesday," said dealers. Prices of short-term gilts remained stable throughout the day. The new loan offering a yield of 11.40 maturing in 2000 was quoted at Rs 100.01, zero coupon 2000 at Rs 82.05, 11.78 per cent 2003 paper at Rs 99.75, 12.25 per cent2008 paper at Rs 83 and 11.55 per cent 2001 at Rs 99.85. The wholesale debt market of the NSE recorded trades worth Rs 95.10 crore (Rs 538.46 crore). Trades worth Rs 20 crore were recorded in the zero coupon bond maturing in 2000 at a weighted yield of 11.46 per cent.
FORECAST: Short-term gilts prices are expected to remain at their previous closing levels on Saturday