Call Money
Call rates held steady on Monday. Opening the day at 10-10.10%, unchanged from its Saturday's close, call rates rose to its intra-day's high of 10.15% on good demand for funds. Lending banks seen quoting higher rates and preferring to park funds in government securities. Call rates hovered in a narrow range between 10% and 10.15% during the trades and closed at 10% levels. "Slightly stringent conditions prevailed at call market on heavy dollar demand amidst reduced liquidity, despite the central bank's infusion of funds", a dealer said. The tight liquidity is due to slow return of the advance-tax outflows into the system in the face of good demand from banks with uncovered positions", a bank official noted. The Reserve Bank of India (RBI) injected Rs 1,395 crore at 10% through its reverse-repo auction while no bid was received in repo auction as call rates remained well over the repo rate of eight per cent.
FORECAST: Call rates around 10 per cent levels on Tuesday.Spot dollar
The rupee appreciated marginally on Monday. Opening at 46.38/39, the rupee showed a steady trend against the dollar on scattered buying support from local players. "Some foreign banks seen supplying dollar on behalf of their FIIs clients", a dealer said. Rupee ruled in four paise range between 46.36 and 46.40 during the trades. At close, rupee quoted at 46.36/37, just half paise higher from the previous day's close of Rs. 46.37/38. However, rupee could not appreciate significantly as state-run banks continued to mop up dollars. The rising forex reserves of the country, which stood at $40,353 million, boosted the market sentiment, a dealer noted. The RBI fixed its reference rate for dollar at 46.39 as against the previous fix of 46.40. In cross-currency trades, the rupee appreciated sharply against the euro by 59 paise to 43.17 (43.76) and by 70 paise against the pound-sterling to 67.70 (68.40).
FORECAST: Rupee seen holding steady on Tuesday.
Forward premiums
Premiums moved down marginally on scattered receivings. "Expectation for restoration of the export refinance limits and a possible cut in the cash reserve ratio by RBI, eased the pressure on the premium levels", a dealer said. The six-month and one-year annualised premia ended lower at 4.52% and 4.58% respectively as compared to 4.58% and 4.68% of the previous day. Cash/spot and cash/tom premiums finished at 1.00/1.10 paise and 0.50/0.60 paise. Rupee showed a steady trend on buying support from local players and ruled in four paise range between 46.36 and 46.40 during the trading session. The rising foreign currency reserves of the country, stood at $40,353 million as on January 12, boosted the market sentiment, a dealer noted. January dollar traded at 4/4.25 paise while in the far forwards, May dollar traded at 72.5/73.5 paise with June dollar quoted at 89.5/90.5 paise levels.
FORECAST: Forward premiums seen gaining on Tuesday.
Gilts
Bond prices moved up on Monday. The yield on the nine and a half-year benchmark 11.30% 2010 paper eased to 10.44, a fall of three basis points from Saturday's level. The 11.30% 2010 paper was seen at Rs 105.10 while the 11.03% 2012 and 11.40% 2008 were pegged at Rs 103.05 and Rs 106.09 respectively. "The secondary market for securities witnessed hectic two-way activities and prices of government bonds continued to rally on renewed buying interest", a dealer said. Call rates hovered in a narrow range between 10% and 10.15% during the trading session and closed at 10% levels. The RBI injected Rs 1,395 crore at 10% through its reverse-repo auction while it didn't receive any offer in its repos-auction. Trades worth Rs 495 crore were seen in the 11.30% 2010 while those in the 11.03% 2012 and 11.40% 2008 amounted to Rs 395 crore and Rs 320 crore respectively
FORECAST: Bond prices seen gaining on Tuesday.
(Compiled by Atmadip Ray)
Copyright © 2001 Indian Express Newspapers (Bombay) Ltd.
