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MARKET ROUND-UP
Call Money
Call rates closed slightly higher on Thursday. Opening the
day at 7.00-7.10% from its overnight close of 6.95-7.00%, call rates
went up on high demand for funds. “Some participants were seen covering
their reserve requirements ahead of the reporting fortnight”, a
dealer with a primary dealership said. Call rates went up to their
intra-day high of 7.50% following demand in the morning session.
Most transactions were done in the region between 7.10% and 7.20%.
However, comfortable liquidity in the system helped the rates to
soften a shade at the fag end of trades. At close, call rates were
seen at 7.25% levels. Meanwhile, the Reserve Bank of India (RBI)
did not receive any applications for its repos and reverse-repo
auctions under liquidity adjustment facility. Meanwhile, the NSE
pegged its overnight Mibid and Mibor at 7.20% and 7.38% respectively.
FORECAST: Call rates seen holding around 7.00-7.25% levels
on Friday.
Spot Dollar
The rupee gained a shade against the dollar on Thursday. Opening
the day lower at 47.04/05 from its overnight close of 47.03/04,
the rupee dipped in he morning session on a spillover of overnight
dollar short-coverings. There was also sustained dollar demand from
corporates and importers. The intra-day low was quoted at 47.06/0650.
Banks took long dollar positions in anticipation of late dollar
demand from corporates and importers. However, adequate local dollar
supplies from exporters and foreign funds helped reversing the rupee
movement.The rupee closed at 47.02/03, up by one paise from its
overnight level. Meanwhile, the RBI fixed its reference rate for
dollar at 47.05, as against its previous fix of 47.04. In cross-currency
trades, the euro was quoted at 40.25/27 with the pound-sterling
at 65.39/41 and the yen (100) at 38.53/55.
FORECAST: The rupee seen trading around 47.00-47.05 levels
on Friday.
Forward Premiums
Forward premiums fell marginally on Thursday. The six-month
and one-year annualised premia closed a shade lower at 4.60% and
4.85% respectively. The future market was quiet and little changed
was seen in the forward dollar premiums from their overnight levels.
However, there was slight downward bias on mild receiving interest”,
a dealer with a forex dealership said. The rupee gained one paise
from its overnight close. Call rates closed higher at 7.25% from
their overnight levels. The benchmark six-months premium payable
at end-November closed at 104/105 paise, lower from its overnight
levels of 105/106 paise. Cash/tom premiums closed at 0.37/0.43 paise
while cash/spot closed at 0.78/0.85 paise. On month-wise premiums,
June dollar closed lower at 6.25/6.50 paise, while in the far forwards,
December dollar closed a shade lower at 122/123 with May ’02 lower
at 218/219.
FORECAST: Forward premiums seen holding steady on Friday.
Gilts
Gilts prices held steady on Thursday. The longer-end papers
rose marginally by around five paise. The benchmark 11.50% 2011A
paper remained more or less steady and closed at Rs 111.25 (Rs 111.23)
while the 11.40% 2008 closed at Rs 110.34 (Rs 110.28) with the 11.43%
2015 closed at Rs 110.15 (Rs 110.12). “Gilts prices were rangebound
today after surviving a scare earlier in the day as the rupee dipped
to touch 47.05. However sentiment was assuaged as the rupee strengthened
over the course of the day to close at 47.02”, I-Sec reported. On
the National Stock Exchange’s wholesale debt segment, trades worth
Rs 2,731.86 crore were seen. Trades worth Rs 550 crore were seen
in the 11.50% 2011A paper, while those in the 11.40% 2008 and the
11.43% 2015 amounted to Rs 320 crore and Rs 270 crore respectively.
FORECAST: Gilt prices seen gaining on Friday.
(Compiled by Atmadip Ray)
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