Call money
Call rates were stable and moved in a narrow range between 8.75% and 9.25% on Monday. Opening the day at 9.00-9.25%, call rates eased to 8.75-9.00% levels in post-noon trades as demand for funds was met. "Call rates opened higher from its previous levels today being the first day of a new reporting fortnight... this saw demand for funds from banks, which moved up call rates. There was steady demand for funds, but adequate liquidity saw call rates quote range bound throughout the day", a dealer said. Most of the deals were struck at 8.75-9.00% levels. Call rates are seen firming up during the week due to `Diwali' coupled with four-day working week. The RBI mopped up Rs 4,100 crore through its repos auction - Rs 2,000 at its the one-day repos and Rs 2,100 crore at its four-day repos auction at at 8.50% each. The outstanding amount under repos stood at Rs 4,555 crore. The NSE pegged its Mibid and Mibor at 8.85% and 9.09% respectively.
FORECAST: Call rates seen holding at 8.90-9.20% levels on Tuesday.Spot dollar
The rupee firmed up against the dollar and held at 46.36/39 levels today. Opening the day at 46.35/36 level, unchanged from its last close, the rupee held rocksteady throughout the day. "The rupee performed well against the dollar as there was no market moving factors", a dealer said, adding: "There was only moderate demand for dollars in a generally quiet market... trades were range-bound". Steady dollar demand from banks pushed the rupee down to intra-day lows of 46.38/39, but late unwinding of positions after dollar supplies emerged in the afternoon allowed the rupee to partly bounce back. The SBI as mainly buying dollars in small-lots while a foreign bank bidding for dollar on behalf of a large petrochemical company. The rupee is seen gaining in the coming days with the SBI launching its `IMD'. This is expected to bring above $4 billion dollars. At close, the rupee was seen at 46.38/39. The RBI pegged its reference rate against the dollar at 46.38.
FORECAST: Rupee to hold 46.37/40 thereabouts.
Forward premiums
Forward premium quoted higher on Monday. The six-month annualised premium was quoted at 4.31% and the one-year annualised premium at 4.53% cent. "Forward premium quoted a shade higher as the rupee went a shade low to 46.38/39 levels during the day", a dealer said. The rupee opened firm against the greenback, but moved a shade lower as there was early demand for dollars. Overall, dollar demand was not high ahead of the festive season and most dealers said that they did not expect demand to increase this week. "The futures market was moderately active and moved in tandem with the spot-rupee... forward dollar premiums ending higher on fresh paying pressure", a dealer with a brokerage said. October dollars quoted at 3/3.50 paise while in the far forwards, April quoted at 102/104 paise while May quoted at 117/119 paise. Cash/spot was quoted at 0.70/0.80 paise while cash/tom and tom/spot was 0.35/0.40 paise apiece.
FORECAST: Premiums seen gaining a shade in intra-day trades.
Gilts
Bond prices quoted a shade higher on Monday. The 11.40 per cent 2008 was traded at Rs 99.9200 with 12.50 per cent2004 at Rs.105.1200. "Bond prices moved a shade higher after the Reserve Bank of India announced the auction of the 11.03per cent 2012 for Rs 3,000 crore on Wednesday. Relatively steady call rates at 8.75-9.25 per cent levels also buoyed bond prices. Under repo transactions, the 11.55 per cent 2001 was traded for Rs 30.00 crore for a repo-term of 7 days at a rate of 9.75%. On the National Stock Exchange's wholesale debt segment, trades worth Rs 881.67 crore were recorded. Deals worth Rs 295.00 crore were seen in the 11.40 per cent 2008 at a weighted average yield of 11.41per cent . Trades in the 11.30 per cent 2010 and 12.50% 2004 amounted to Rs 70.00 crore (11.63per cent) and Rs.65.00 crore (10.68%) respectively.
FORECAST: Bond prices seen gaining shade.
-- (Complied by George Glace)
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