Call Money
Call rates opened marginally low and held below 9% levels on Thursday. Opening the day at 8.25-8.50%, call rates went a shade higher to 8.50-8.75% levels due to early morning demand for funds, but went down to 8.20-8.50% during the day. "The market was dull as most of the banks have already covered there positions ahead of Reporting Friday. There was ample liquidity, which saw rates hovering at lower levels", a dealer said. Call rates were rangebound and saw little activity as there no market moving factors. "An auction announcement could lead to some action though in the call market", a dealer with a primary dealership said. At close, call rates were seen at 8.50-8.75% levels. The RBI accepted all the eleven bids forRs 2,695 crore at its one-day repos and nine bids for Rs 455 crore at its five day repos - both at 8.50%.The NSE pegged its overnight Mibid and Mibor at 8.32 (8.43%) and 8.50% (8.69%) respectively.
FORECAST: Call rates seen at 8.50% levels on Friday.Spot dollar
The rupee went a shade lower due to steady demand for dollars and was range bound in the range of 46.32-42.38 on Thursday. Opening the day at 46.34/36 from its previous close at 46.32/33, the rupee went lower to 46.37/38 levels due to dollar demand from corporates and importers. "There was steady dollar demand from corporates and importers, which exerted pressure on the rupee. This was coupled with dollar demand from banks on expectations of dollar demand ahead of festive season", a dealer said, adding: "Even though the rupee was under pressure, it performed well after the improvement on the situation in the middle-East and also a lowering of oil prices in the international market". At close, the rupee was seen at 46.32/33. The Reserve Bank of India maintained its reference rate for the dollar at 46.33.
FORECAST: Rupee seen holding steady on Friday.
Forward premiums
Forward premiums quoted softer on Thursday as steady demand for dollars exerted some pressure on the rupee. The six-month annualised premium was quoted at 4.23% (4.31%) with the one-year annualised premium at 4.51% (4.54%). "Forward premiums went higher in early trades after increased demand for dollars from corporates and also from banks exerted pressure on the rupee and saw it losing ground. This resulted in higher forward premiums", a dealer said. "... but the improvement in middle-East and lowering of oil prices in international market saw premiums hold steady at close of trades" a dealer said. October dollars quoted at 4/4.50 paise (6/6.50) while in far forwards April quoted at 102/104 paise (105/107) and May at 116/118 paise (120/122). Cash/spot was quoted at 1.50/1.75 paise with cash/tom at 0.25/0.35 paise and tom/spot at 1.15/1.25 paise.
FORECAST: Forward premiums seen softening a shade on Friday.
Gilts
Bond prices were seen a shade lower on Thursday. The 11.40% 2008 was traded at Rs 99.80 and 12.50% 2004 at Rs 105.1500. "Bond prices went a shade low as the rupee was under pressure in early trades on heavy demand for greenback from corporates and also from banks", a dealer said. The rupee went a shade lower to 46.37/38 levels after opening the day at 46.34/36 due to dollar demand from corporates and importers.. Call rates though held below 9%t levels after opening the day at 8.25-8.50% . On the National StockExchange's wholesale debt segment, trades worth Rs 874.03 were recorded. Deals worth Rs 160 crore were seen the 11.40% 2008 at a weighted average yield of 11.44% with those in the 11.30% 2010 at Rs 88.50 crore. The 12.50% 2004 was traded at Rs 65.20 crore at a weighted average yield of 10.70%.
FORECAST: Bond prices seen gaining a shade in intra-day trades.
(Compiled by George Glace).
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