Call Money
Call rates ended sharply lower on reporting Friday due to limited demand for funds, as most participants had covered their reserve needs earlier. Opening the day at 8.10%, from its overnight close of 8.15%, call rates hovered around 8% levels for most part of the day. "Liquidity was not a problem in the market despite today being a reporting Friday", a dealer said adding that trades were done for one-day and three-days basis. During the trades, call rates touched its intra-day high of 8.25% and low of 7.75%. At close, call rates were seen at 7.50-7.75% levels. The market players expect call rates to hover around the 8% levels on Saturday. The Reserve Bank of India (RBI) did not receive any application for its repos and reverse-repos auctions today. Elsewhere, the NSE pegged its overnight Mibid and Mibor at 7.86% and 8.04% respectively.
FORECAST: Call rates seen around eight per cent levels on Saturday.Spot dollar
The rupee hardened against the dollar on Friday. Opening at 46.55/56, higher from its overnight close of 46.57/58, the rupee traded around 46.57/58 levels during the trading sessions. The market witnessed fresh dollar demand from importers and state-run banks in the face of low dollar inflows from exporters. "Banks took long dollar positions in early trade in anticipation of dollar demand later in the day. Month-end dollar demand may also exert pressure on the rupee", a dealer said. The rupee was seen at its intra-day low at 46.59/60. At close, the rupee recovered slightly to 46.58/59 levels. Meanwhile, the RBI fixed its reference rate for dollar at 46.58 as against its previous fix of 46.63. Meanwhile, in cross-currency trades, the euro was quoted at 42.15/18 with the pound-sterling at 67.39/41 and Japanese Yen (100) at Rs..39.90/92.
FORECAST: The rupee seen around today's level on Monday.
Forward premiums
Forward premiums remained more or less steady on Friday. The six-month and one-year annualised premia closed a shade higher at 4.25% and 4.53%, as compared to its overnight close of 4.21% and 4.51% respectively. The rupee ended lower by one paise on sustained dollar demand from state-runs banks and importers. Dollar supply was poor in the foreign exchange market. "Banks took long dollar positions in early trade in anticipation of dollar demand later in the day. Month-end dollar demand may also exert pressure on the rupee", a dealer said. Premiums are seen dipping from the start of the next fortnight after the first stage of CRR cut releases Rs 2,050 crore into the system. There was not much movement in the month-wise forward premiums segment. March dollar traded at 14.5/15 paise, while in far forwards, July dollar traded at 82/84 with August dollar at 101/102, while January traded at 185/187.
FORECAST: Forward premiums seen easing on Monday.
Gilts
Bond prices fell marginally on Friday. The benchmark 11.30% 2010 paper was seen at Rs 107.20, while the 11.40% 2008 and 12.50% 2004 seen at Rs 108 and Rs 108.22 respectively. "Gilts market traded in a narrow range and remained largely unmoved. Fears of an impending gilt issuance kept the bulls restrained", I-Sec said. Meanwhile, the secondary market for securities remained listless in tight range-bound trade due to lack of market-moving factors. Most operators were reluctant to take fresh positions ahead of the budget on Wednesday, dealers said. The RBI did not receive any applications for its repos and reverse-repos auctions today. On the NSE's wholesale debt segment, trades worth of Rs 2433.50 crore were seen. Trades worth of Rs 640 crore was seen at 11.30% 2010 paper, while those in the 11.40% 2008 and 12.50% 2004 papers amounted to Rs 210 crore and Rs 200 crore respectively.
FORECAST: Bond prices seen moving up marginally on Saturday.
(Compiled by Atmadip Ray)
Copyright © 2001 Indian Express Newspapers (Bombay) Ltd.
