Call money
Call rates remained rocksteady on Tuesday. Opening the day at 9.90-10% from its last close of 10% levles, call rates witnessed little movement and stayed in a tight range between 9.75% and 10.05% during the intra-day trades. Liquidity continued to be tight as major parts of the advance tax is still to enter the system. Further, with Friday's bank holiday, the bank has to cover up their reserves position by Thursday, and there were demand for funds from the uncovered players. However, continuous liquidity support by the central bank kept the call rates around 10% levels. At close, call rates seen at 10%, unchanged from the previous day's close. The RBI accepted seven bids for Rs 1,195 crore in its one-day reverse-repo auction, at the cut off rate of 10%. However, the RBI did not receive any application for its repos- auction. Meanwhile, the NSE pegged its overnight Mibid and Mibor at 9.38% and 10.22% respectively.FORECAST: Call rates to be around 10 per cent levels on Wednesday.
Spot dollar
Opening steady at 46.36/37, rupee moved upwards on sustained dollar supply by foreign banks and domestic exporters coupled with absence of follow up demand. "Dollar selling by foreign banks, foreign institutional investors (FIIs) and foreign direct investors induced other banks to unwind their long dollar position in the absence of adequate demand from corporates and importers", a dealer said. State-run banks seen sucking out the excess dollar restricting the further appreciation of rupee. At close, rupee quoted at 46.3450/3500, two paise stronger from the previous day's close of Rs. 46.3650/3750. Meanwhile,the Reserve Bank of India fixed its reference rate for dollar at 46.35 as against the previous fix of 46.39. In cross-currency trades, the rupee fell sharply by 55 paise against the pound-sterling to 68.25 (67.70) and 48 paise against the euro to 43.65 (43.17).
FORECAST: Rupee seen at 46.35/37 levels on Wednesday.
Forward premiums
Forward premiums held steady on Tuesday. Premiums moved in a narrow range and closed a bit lower tracking the firm spot rupee. Rupee moved upwards on sustained dollar supply by foreign banks and domestic exporters coupled with absence of follow up demand. However, state-run banks seen sucking out the excess dollar restricting the further appreciation of rupee. "The market continued to witness good dollar supply, mainly from FIIs", a dealer noted The six-month and one-year annualised premia ended at 4.51% and 4.57% respectively, a bit lower from 4.52% and 4.58% of the previous day's close. Cash/spot and cash/tom premiums ended at 1.10/1.20 paise and 0.55/0.60 paise respectively. January dollar traded at 3.5/4 paise while in the far forwards, May dollar traded at 72/73 paise with June dollar quoted at 89/90 paise levels.
FORECAST: Forward premiums seen at same levels on Wednesday.
Gilts
Bond prices eased a bit on Tuesday. The 11.43% 2015 paper was seen at Rs 105.02 while the 11.40% 2008 and 12.30% 2016 were pegged at Rs 106.22 and Rs 110.80 respectively. Call rates witnessed little movement and stayed in a tight range between 9.75% and 10.05% during the intra-day trades. Liquidity continued to be tight as major parts of the advance tax is still to enter the system. The Reserve Bank of India accepted seven bids for Rs 1,195 crore in its one-day reverse-repo auction, at the cut off rate of 10%. However, the RBI did not receive any application for its repos- auction. On NSE's wholesale debt segment, trades worth Rs 3,791.54 crore were seen. Trades worth Rs 540 crore were seen in the 11.43% 2015 while those in the 11.40% 2008 and 12.30% 2016 amounted to Rs 470 crore and Rs 345 crore respectively.
FORECAST: Bond prices seen stable on Wednesday.
(Compiled by Atmadip Ray)
Copyright © 2001 Indian Express Newspapers (Bombay) Ltd.
