Call money
Call rates continued to rule over 10% levels on Friday. Opening at 10-10.15% from its last close of 10.15%, call rates inched up to its intra-day high at 10.25% on good demand for funds and reduced supply. "A late splurge in demand from foreign and private banks and many public-sector banks with large open positions exerted pressure on call rates on the reporting Friday. The absence of a major lending participant also caused rates to rule on the higher side", a dealer said. Call rates hovered between 10% and 10.25% during the trading session. At close, call rates ended at 10.15% levels. The RBI accepted 31 bids for Rs 3,975 crore at ten per cent in its three-day reverse-repo auction, while no application was received for repos-auction as the call rates stayed above the repo rate of eight per cent. Elsewhere, the NSE pegged its overnight Mibid and Mibor at 9.99% and 10.14% respectively.FORECAST: Call rates seen at same levels on Saturday.
Spot dollar
The rupee remained firm against dollar on Friday. Opening at 46.3850/39, from its last close of 46.40, rupee moved only in upward direction during the trading session. "There was sustained dollar sales by foreign banks, foreign institutional investors (FIIs) and foreign direct investors, induced other banks and exporters to liquidate their long dollar position which, in turn, strengthened the rupee further", a dealer said. At close, rupee quoted a 13-week high of 46.37/38. "Rise in country's foreign exchange reserves which stood above $40 billion and firm euro has boosted the market sentiment", a bank official said. Meanwhile, the RBI fixed its reference rate for dollar at 46.40 against its previous fix of 46.42. In cross-currency trades, rupee closed six paise lower against the euro at 43.76 (43.70), while five paise lower against the pound-sterling at 68.40 (68.35).
FORECAST: Rupee seen holding steady on Monday.
Forward premiums
Forward premiums firmed up further on paying pressure on Friday. The six-month and one-year annualised premia closed higher at 4.58% and 4.68% respectively as compared to 4.47% and 4.53% of the previous day. "The firm call rates put pressure on the premiums", a dealer said. Call rates remained over 10% levels throughout the trading session on good demand for funds and reduced supply . Cash/spot and cash/tom premiums also ended higher at 2.50/2.60 paise and 1.90/2.00 paise respectively. Rupee remained firm and ended at 46.37/38, a 13-week high. "Rise in country's foreign exchange reserves which stood above $40 billion coupled with firm euro has boosted the market sentiment", a dealer with a forex dealership said. January dollar traded at 5.25/5.75 paise while in the far forwards, May dollar traded at 75/76 paise with June dollar quoted at 92/93 paise levels.
FORECAST: Forward premiums seen gaining on Monday.
Gilts
Bond prices moved up on Friday. The prices at the longer-end gained by 15-20 paise while the medium-sized paper gained by 8-10 paise. The 11.40% 2008 paper was seen at Rs 105.58 with the 11.30% 2010 at Rs 104.60. Call rates remained steady over 10% levels throughout the trading session. At close, call rates ended at 10.15% levels. The Reserve Bank of India (RBI) accepted 31 bids for Rs 3,975 crore at ten per cent in its three-day reverse-repo auction, while no application was received for repos-auction as the call rates stayed above the repo rate of eight per cent. On National Stock Exchange's wholesale debt segment, trade worth Rs 3,819.86 crore were seen. Trades worth Rs 600 crore were seen in the 11.40% 2008 while those in the 11.30% 2010 and 11.43% 2015 amounted to Rs 440 crore and 390 crore respectively.
FORECAST: Bond prices seen gaining on Saturday.
(Compiled by Atmadip Ray)
Copyright © 2001 Indian Express Newspapers (Bombay) Ltd.
