Call Money
Call rates moved up on Thursday. Opening the day at 7.50-75%, from their previous close of 7.25%, call rates moved up quite sharply owing to heavy demand for funds at the inter-bank call money market. There was some pressure on the liquidity front as advance tax payments began today and the proposed state loan auction outflows on March 20 has also exerted pressure on call rates. Heavy demand in the early part of the reporting cycle further aided the rise in rates. Call rates moved up to their intra-day high of 8.25%. "However, most deals were struck at around 7.75%-8.00% levels," a dealer with a primary dealership said. At close, call rates were seen at 8.00-8.25%, higher from yesterday's close of 7.25%. The RBIrejected all three bids for Rs 145 crore at its one-day reverse repo auction. Elsewhere, the NSE pegged its overnight Mibid and Mibor at 7.84% and 8.09%.FORECAST: Call rates seen at 8.00-8.50% levels on Friday.
Spot Dollar
The rupee gained a bit from its overnight levels on Thursday. Opening steady at 46.66/67, the rupee appreciated by three paise at the end of the day's trade. "The rupee strengthened marginally today along with the day bourses turning positively for the second consecutive day," a dealer said.. Renewed dollar sales by exporters and the unwinding of long positions by banks drove the rupee higher, discounting political uncertainties. Dollar sales by foreign funds also gave a fillip to a better rupee sentiment, dealers added. The rupee was seen at its intra-day low at 46.68 while it closed at 46.63/64. Meanwhile, the Reserve Bank of India fixed its reference rate for dollar at 46.65, against its previous fix of 46.69. In cross-currency trades, the rupee ended higher against the euro and the pound-sterling at 42.44/46 and 67.47/49 respectively.
FORECAST: The rupee seen more or less steady on Friday.
Forward Premiums
Forward premiums moved up marginally on Thursday. The forward dollar premiums continued to rise on persistent paying pressure. The six-month annualised premium ended higher at 4.65% against yesterday's closing level of 4.53% while the one-year annualised premium closed 4.80% as against its overnight level of 4.70%. "Market players expect a cut in the Fed rate and premiums went up, in order to bridge the gap between US and domestic interest differential," a dealer said. Relatively tight conditions at the call market also exerted pressure on premiums. "The cash/tom premiums ended at 0.45/0.35 while cash/spot ended at 1.75/1.65" a forex dealer said. The short-end premiums remained steady while the premiums in far forwards moved up slightly. March dollar traded at 7/7.50 paise, while in the far forwards, August traded at 97/98 with September at 114/115.
FORECAST: Forward premiums seen rangebound on Friday.
Gilts
Bond prices bounced back by 20-30 paise on Thursday compared to yesterday's closing levels. "Prices went up by around 80 paise during the intra-day trades, but fell by 20 paise after Mamata Banerjee withdrew support from the NDA coalition," a dealer said. There were also some profit-bookings that capped the gains. The benchmark 11.40% 2008 paper closed at Rs 107.95, while the 12.50% 2004 closed at Rs 108.50 and 11.30% 2010 at Rs 107.45. Liquidity tightened a bit on outflow of funds due to advanced tax payments. The RBI rejected all three bids for Rs 145 crore for its reverse-repo auction. On the NSE's whole sale debt segment, trades worth Rs 1,781.36 crore were seen. Trades worth Rs 512.50 crore were seen in the 11.40% 2008 paper, while those in the 11.30% 2010 and 12.50% 2004 traded at Rs 325 crore and Rs 195 crore respectively.
FORECAST: Bond prices seen more or less steady on Friday.
(Compiled by Atmadip Ray)
Copyright © 2001 Indian Express Newspapers (Bombay) Ltd.
