Call Money
Call rates closed above the repo rate at 8.00-8.25 per cent owing to good demand for funds despite the reporting Friday. Call rates opened lower at 6.50-7 per cent. Later call rates rose to 8.40 per cent as the market witnessed tightening of liquidity owing to active covering by some participants as the market was closed on Thursday. Overnight rates dropped a little to 8.00-8.25 per cent at the close. However, most deals were conducted around 7 per cent, dealers said. The Reserve Bank of India mopped up Rs 286 crore through three-day 8 per cent fixed-rate repos for parties holding SGL and current accounts. The NSE's 14-day Mibid and Mibor quoted at 8.87 per cent and 9.51 per cent, the one-month Mibid and Mibor at 9.41 and 10.15 per cent and the three-month Mibid and Mibor at 10.42 per cent and 11.19 per cent.FORECAST: Call rates are seen at 8-9 per cent on Saturday.
Spot Dollar
The rupee moved in a narrow 2 paise band on Friday. The Indian currency opened at42.46/47 against the dollar, 1 paise higher than its previous close of 42.47/48. Marginal demand by a few European banks saw the rupee weaken by 2 paise in the afternoon. However, some selling by exporters saw the rupee gain and finally close at 42.46/47, unchanged from its opening level. According to forex dealers, the rupee is expected to rule stable at 42.46/56 this fortnight as no major inflows are expected into the system. The Reserve Bank of India's reference rate for the dollar was Rs 42.47 on Friday compared with Rs 42.48 on Thursday.
FORECAST: The rupee is seen between 42.46 and 42.58 on Monday.
Forward Premiums
Forward premiums eased by 1-2 paise on Friday owing to marginal receiving by exporters. The six-month annualised cover closed at 7.25 per cent (7.3 per cent), three months at 5.9 per cent (5.9 per cent) and one month at 5 per cent (5.05 per cent). January premium closed at 11-13 paise (12-14 paise), February at 30-34 paise (32-36 paise), March at 53-55 paise (56-61paise), April at 83-86 paise (87-92 paise), May at 113-116 paise (116-121 paise), June at 144-147 paise (146-151 paise), July at 174-177 paise (175-181 paise), August at 206-209 paise (208-211 paise), September at 249-252 paise (252-256 paise), October at 270-275 paisee (276-281 paise), November at 302-307 paise (306-309 paise) and December at 336-341 paise (340-344 paise).
FORECAST: The six-month annualised premium is seen at 7-7.6 per cent on Monday.
Gilts
Prices of short-term government securities moved up by 1-2 paise on Friday owing to increased demand. "A lot of buying interest was seen in the government securities market which improved market sentiments," dealers said. The 11.55 per cent paper maturing in 2001 quoted at Rs 100.12 paper, the 11.40 per cent 2000 paper at Rs 100.12, the zero coupon 2000 paper maturing on February 3 at Rs 89.37, the 13.40 per cent 1999 paper at Rs 13.52 and the 13.70 per cent 1999 paper at Rs 100.45. The wholesale debt market of the NSE witnessedtrades worth Rs 452.77 crore. The 11.40 per cent government loan maturing in 2000 traded worth Rs 65 crore at a weighted yield of 11.32 per cent. The 11.55 per cent government loan maturing in 2001 traded worth Rs 50 crore at a weighted yield of 11.52 per cent. Repo trades worth Rs 100 crore were transacted for repo terms ranging from 1 day to 14 days at rates of 7.5 per cent to 9.1 per cent per annum.
FORECAST: Gilt prices are seen stable on Saturday.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.
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