Call money
Call rates were rocksteady on Thursday. Opening a bit lower at 9.75-10 per cent from its previous close of 9.90-10.10 per cent throughput, call rates stayed in a tight range between 9.50 per cent and 10 per cent levels during the intra-day trades. At close, call rates were at 9.90-10 per cent levels. Though there was good demand for funds in the first week of the fortnight, call rates did not move above 10 per cent levels, as the RBI continued to support the liquidity position through its reverse-repo auction. The RBI on Thursday accepted 12 bids to inject Rs 2,205 crore through its reverse-repo auction at the cut-off rate of 10 per cent, while it did not receive any bids for the repos-auction as call rates were above the repo rate. "Call rates are likely to fall in the second week of the month," a dealer with a primary dealership said. The NSE pegged its overnight Mibid and Mibor at 9.88 per cent and 10.07 per cent respectively.FORECAST: Call rates seen around 10 per cent levels on Friday.
Spot dollar
The rupee continued its downward trend against the dollar on Thursday. Opening steady at 46.71/72 from its last close of 46.70/71, the rupee came under pressure soon on good dollar demand by firms and some foreign banks. Rupee touched its intra-day low of 46.74 in the afternoon deals and closed at 46.7250/73, down by two and half paise from its previous close. "There was good dollar supply by foreign entities and exporters, but some PSU banks seen buying rupee heavily for their corporate clients, and that put pressure on the rupee", a dealer said. However, "The news of rate cut by 50 basis points by the Fed Reserve has not hit the forex market so far," bankers said. The RBI fixed its reference rate for dollar at 46.74, against its previous fix of 46.70 levels. In the cross-currency trades, the rupee closed higher against the pound at 70.05 (70.72) and 35 paise higher against the euro at 44.22 (44.57).
FORECAST: Rupee seen at lower levels on Friday.
Forward premiums
Forward premiums moved up a bit on Thursday. Tracking the spot rupee, the forward premiums moved up on paying pressure. The rupee opened at 46.70/72 and came under pressure soon on good dollar demand by corporators and some foreign banks. Rupee touched its intra-day low of 46.74 and at close rupee seen at 46.7250/73, down by two and half paise from its previous day's close. "The news of a interest rates cut by 50 basis points by the Fed Reserve has not hit forex market so far," bankers said. The six-month and one-year annualised premia ended a bit higher at 4.04 per cent and 4.30 per cent respectively compared to 3.91 per cent and 4.20 per cent of the previous day. Cash/spot premium ended at 2/2.20 paise with cash/tom premium at 0.50/0.55 paise. January dollars were traded at 11/11.5 paise, while in the far forwards, May quoted at 74/74 paise with June at 89/90 paise, and the December dollar was at 195/197 paise.
FORECAST: Forward premiums may move up marginally on Friday.
Gilts
Bond prices moved up sharply on Thursday. Prices of long-dated gilts rose by 75-90 paise over yesterday's levels and the 10-year yield fell by 12 basis ponts to 10.67 per cent. The 11.30 per cent 2010 paper was seen at Rs 104 with the 11.40 per cent 2008 and 11.03 per cent 2012 was seen at Rs 104.95 and Rs 101.21 respectively. Call rates stayed in a tight band of 9.50-10 per cent levels during the intra-day trades. At close, call rates seen at 9.50-10 per cent levels. The RBI accepted 12 bids to inject Rs 2,205 crore through its reverse-repo auction at 10 per cent, while it did not receive any bids for the repos-auction. On the NSE wholesale debt segment, trades worth Rs 3,333.19 crore were seen. Trades worth Rs 545 were seen in the 11.30 per cent 2010 paper while those in the 11.40 per cent 2008 and 11.03 per cent 2012 amounted to Rs 465 crore and 410 crore respectively.
FORECAST: Bond prices seen holding steady on Friday.
(Compiled by Atmadip Ray)
Copyright © 2001 Indian Express Newspapers (Bombay) Ltd.
