CALL MONEY
Call rates ended a tad lower on easy liquidity on Wednesday. Opening the day at 7.90-8 per cent, unchanged from the previous closing levels, call rates headed downwards with liquidity matching demand. Most of the deals were struck at around 7.90-8.00 per cent levels. "Call rates were extremely rangebound today... hardly moved from its early quotes", a dealer with a European bank said. A small inflow of Rs 105.18 crore was seen by way of coupon payments on the 9.5 per cent 2004 and the 10.25 per cent 2012. Lacklustre demand for funds saw call rates finish the day at 7.80-8 per cent. Call rates would have declined still further, but for the slight demand for funds at lower rates to square off RBI refinance. "The coming days may see more fund inflows and call rates will ease further", a dealer said. Aiding liquidity will be the RBI's move to treat cash in banks' vaults as eligible for CRR balances from Wednesday.
FORECAST: Call rates seen at 7.50-7.75% levels on Thursday.SPOT DOLLAR
The rupee ended slightly firmer on Wednesday after showing signs of weakness due to hectic dollar-buying by the SBI. Opening the day at 43.41/42, higher from the previous levels of 43.4175/4225, dealers said SBI was seen buying dollars actively from the market in early trades reportedly on behalf of a large state-run oil firm.
"There was selling by some banks later, which allowed the rupee to gain some ground," a dealer with a forex brokerage said. At close, the rupee was seen at 43.4050/41. Cash/spot ended at 0.50/0.75 paise, while cash/tom and tom/spot ended at 0.12/0.25 paise each. The RBI maintained its reference rate for the dollar at 43.41. The rupee ended at 43.81/83 to a euro and 69.51/53 per pound sterling.
FORECAST: The rupee seen at 43.39-41 range on Thursday.
FORWARD PREMIUMS
Premiums ended lower on Wednesday with the six-month annualised premium ending at 4.41 per cent (4.61 per cent). "Forward premiums remained easy on account of soft call rates and easy liquidity in the money market," a dealer with a state-run bank said. The call rates ended at 7.80-8 per cent on Wednesday. "There was good receivings by banks and hedging of dollar inflows by exporters in the far forwards," a dealer with a forex brokerage said. December premiums ended at 8/10 paise, January 27/30 paise, February at 40/43 paise, while in the far forwards May dollars finished at 92/94 paise, June at 109/112 paise with July at 126/129 paise.
FORECAST: Forward premiums seen softer on Thursday.
GILTS
Bond prices ruled firmer by 15-20 paise on hectic buying support on Wednesday. "Buying interest was fuelled by lower call money rates in the money markets," a dealer with a primary dealership said.
At close, the 11.83 per cent 2014 was dealt at Rs 101.58 (Rs 101.31) while the 12.40 per cent 2013 rose to Rs 104.39 (Rs 104.10).
"The rally was also due to no announcement of a bond auction being made during the trading hours", dealers felt. Long-dated papers rose by around 25-28 paise with those at the short-end by 10-12 paise.
"Prices, especially those of long-term papers started moving up in early trades on good liquidity in the money market," a dealer at a brokerage said.
FORECAST: Bond prices seen firmer, but may react to any announcement of a bond auction on Thursday.
(Compiled by Anurag Joshi)
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.