Call money
Call rates quoted lower at 13.50% levels on Wednesday. Opening the day at 14.50-15% from its last close at 13-13.05% thereabouts, it ruled steady throughout the day. "Unlike on Tuesday when it flared up to 15.70% after heavy outflows at the RBI repos-auctions, things were quieter", a dealer said. Stray quotes were seen at 16%, but no deals were reported at these levels. "The bulk of the deals were struck at 13.50-14%", a dealer said.The rates were seen at 11-12%. The R BI accepted six bids for Rs 1,320 crore at 12% at its one-day repos and 21 bids for Rs 1,360 crore at 13 % and its five-day repos. Total borrowings in the call market on Tuesday stood at Rs 16,970 crore with lendings at Rs 10,587 crore. Turnover in the term-money market stood at Rs 1,267 crore at rates ranging between 9.50% and 13.50%. The amount outstanding under repos stood at Rs 19,115 crore. The NSE pegged its overnight Mibor and Mibid at 13.33% and 14.02% respectively.
FORECAST: Call rates seen at current levels on Thursday.
Spot dollar
The rupee held steady against the dollar on Wednesday. Opening the day at 45.7050/71 from its last close at 45.70/71, the rupee was seen in a narrow between 45.70 and 45.62/63 where it closed. "There was improved dollar inflows and thin demand today... a few corporates reportedly sold dollars, which they raised earlier. Fresh investments by foreign funds in the bourses also augmented dollar supplies", a dealer with a forex brokerage said. The rupee has appreciated by 18 paise in the four straigh ttrading days from 45.80/81 on August 30 to 45.62/63 as on today. It has gained 14 paise in three days of September. Cash/spot quoted at 1.75/2 paise with both cash/tom nd tom/spot at 0.75/1 paise. The Reserve Bank fixed its reference rate for the dollar at 45.68 as against its previous 45.74.
FORECAST: Rupee seen at 45.70/73 on Wednesday.
Forward premiums
Forward dollar premiums quoted steady. The 6-month and 1-year annualised forward premiums closed higher at 4.86% (4.91%) and 4.61% (4.65%). "Tracking the strong spot rupee, forward premiums also came down on scattered receivings... there was not much interest for forward dollars as importers, seeing the rupee's firm trend, were not in a hurry to take positions and preferred to wait", a dealer said. Premiums had moved up a shade on Tuesday after call rates flared up to 15.70% after heavy outflows at the RBI repos-auctions to the extent of Rs 10,635 crore. "The feeling is that call rates will quote lower in the day ahead. The RBI's repos-rate cuts indicate so. And with Reporting Friday around the corner, premiums will only quote softer", a dealer said. September dollars quoted at 14/16 paise (15/16 paise), October at 32/34 paise (34/36 paise) while in the far forwards, April closed at 136/138 paise (137/139 paise) and May at 153/155 paise (154/155 paisa).
FORECAST: Premiums seen at current levels on Thursday.
Gilts
Bond prices fell on Tuesday. The recently issued 11.40 per cent 2008 was seen at Rs 99.78/80 (Rs 99.72) with the 12.50 per cent 2004 was seen at Rs 104.85 (Rs 104.80) thereabouts. "Bond prices were up riding on the back of easy call money rates and a firm rupee", a dealer with a primary dealership said. Bond prices had dipped on Tuesday after call money rates flared up to 15.70 per cent after outflows to the extent of Rs 10,635 crore at the Reserve Bank's one-day and three-day repos. "The mood is bouyant on the bond front... the agressive cut-off at the Reserve Bank's 364-day T-bill auction also saw bond prices perk up", a money market analyst said. The yield at the auction was 10.82 per cent, down from the last auction's 10.94per cent.
FORECAST: Bond prices seen moving up on Thursday.
(Compiled by Raghu Mohan)
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