Call Money
Call rates held at 10% levels on Tuesday. Opening the day at 9.75-10%, call rates held these levels throughout the day on relatively poor demand for funds. "Call rates slipped to 9.90% levels once the early demend was met, but moved up in later day trades as a few banks covered for their reserve requirements", a dealer with a Gulf-based bank said. At close, call rates were seen at 10-10.10% thereabouts. Inflows of nearly Rs 4,265 crore were seen in repo-reversals and redemption of dated-stock. The central bank mopped up Rs 4,790 crore in repos-auctions - Rs 1,115 crore at its one-day repos and Rs 3,675 at its three-day repos at ten per cent rate. Bond prices held steady with the 11.40% 2008 was seen at Rs 99.94 levels and the 12.50% 2004 at Rs 104.9500. The NSE pegged its overnight Mibid and Mibor at 9.90% and 10.09% respectively.FORECAST: Call rates seen at 10.05% levels on Wednesday.
Spot dollar
The rupee weakened in intra-day trades to 46.09/10, but recovered by close to 46.05/07. Opening the day at 46.01/03, little changed from its overnight close at 46.01/02, the rupee fell shade on corporate interest for dollars."Renewed dollar demand from corporates and importers at relatively lower levels wiped out part of the rupee's overnight sharp gains... the rupee though is firmly entrenched at current levels", a dealer said. The rupee had posted handsome gains against the dollar on Monday following a dip in overseas crude oil prices after the US decided to release stocks from its strategic oil reserves. "Dollar inflows towards the close of trades partly propped up the rupee... a few foreign banks were seen selling dollars in the the closing minutes of trades" a dealer said. Cash/spot quoted at 1./1.0 paise with cash/tom and tom/spot at 0.50/1 paise. The RBI maintained its reference for the dollar at 46.07 as against its last fix at 46.02.
FORECAST: Rupee seen at 45.10-46.15 levels on Wednesday.
Forward premiums
Forward premiums quoted steady on Tuesday. September dollars quoted unchanged 0.50/1 paise, October at 21/22 paise while in the far forwards, April closed at 130/132 paise with May at 147/149 paise. "There was hardly much of paying interest... initially premiums did go higher with the spot-rupee dipping a shade in intra-day trades to 46.09/10 levels, but they came off with the rupee gaining a shade", a dealer with a European bank said. The sixth-month annualised forward premium closed a bit lower at 4.85% (4.99%). A deferment in oil-price and news that the State Bank proposed to raise $2-3 billion by way of a structured offering for non-resident Indians (NRIs) has seen the rupee gain. Further, a statement by US energy secretary, Bill Richardson, that 30 million barrels of strategic petroleum reserve crude will be released during October also affected sentiment in the forex-market.
FORECAST: Premiums seen at current levels on Wednesday.
Gilts
Bond prices held steady on Tuesday. The 11.40% 2008 was seen at Rs 99.94 levels with the 12.50% 2004 at Rs 104.9500.y"Steady call rates at 10% levels, a relative calm rupee at 46.09/10 and a repos-auction quote at 10% saw gilt prices move in a five-band today" a dealer with a primary dealership said. On the National Stock Exchange wholesale debt segment, trades worth Rs 512 crore were seen. The 11.40% 2008 saw trades worth Rs 60 crore at weighted average yeild at 11.40%; in the 11.15% 2002 at Rs 80 crore (10.67%); and those in the 12.50% 2004 Rs 65 crore (10.77%). "On the whole, bond prices were generally down... trades were also dull", a dealer with a European bank said. Deferment in oil-price and news that the State Bank proposed to raise $2-3 billion by way of a structured offering for non-resident Indians (NRIs) had raised bond prices last week..
FORECAST: Bond prices seen at holding steady on Wednesday.
(Compiled by George Glace.)
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