Market Round-Up

Updated: Jan 22 2003, 05:30am hrs
Call Money
Call rate closed marginally lower on Tuesday. The rates closed at 5.90-6.10 per cent as the market witnessed greater liquidity as a result of the Reserve Bank of Indias rejection of parts of amount received in repo auction. Opening the day flat at 6.00-6.10 per cent, the call moved up to a high of 6.25 per cent in morning deals as the aftereffects of last weeks OMO sales was still visible in the form of tight liquidity. However, partial rejection of repo amount by the apex bank eased call rate later which closed at 5.90-6.10 per cent, down from 6.00-6.25 per cent of Mondays close. The Reserve Bank of India accepted only Rs 963 crore at its daily repo auction at a cut-off rate of 5.50 per cent, parts of five bids it received for Rs 1,925 crore. During the day, call rates hovered around 6.00-6.25 per cent range
FORECAST: Call rates to remain easy on Wednesday

Spot Dollar
The rupee ended the day at the previous days levels on Tuesday. The currency came off from early lows and ended flat against the dollar at Rs 47.94/95 on renewed export remittance at the interbank foreign exchange market. The rupee opened on a bearish note at Rs 47.95/96 and further slipped to Rs 47.9650 level in the morning as Mondays New York holiday affected dollar inflows, dealers said. However, fresh export dollar sales and lesser demand towards the afternoon helped the rupee overcome its initial losses to close at Rs 47.94/95, unchanged from its Mondays close. The market was moderate but even the scattered dollar demand mismatched the thin inflows in early trades, slightly pressuring the rupee. The rising global oil prices affected the sentiment. The RBI fixed the reference rate for the US dollar at Rs 47.95, four paise higher than Mondays fix of 47.91.
FORECAST: Rupee to firm up on Wednesday

Forward Premiums
Forward dollar premiums eased further on Tuesday. The easing was on account of steady receiving by state-run banks. The benchmark six-month annualised premia closed at 3.17 per cent, down from 3.24 per cent of the previous day closing level. Cash/spot and cash/tom premium finished at 1.00-1.25 paise and 0.50-0.60 paise, respectively. The tight liquidity position in the wake of last weeks OMO was also reflected in the market. The month-wise premia in paise for the short term were, 2.5/3.5 paise from January, 15/16 paise for February, 26/27 paise for March and 41/43 paise for April. In the far forwards September dollar was quoting at 99/101 paise, October dollar was at 109/111 paise, November dollar was at 119/120 paise and December dollar was at 130/132 paise at the end of the day.
FORECAST: Forward premia to remain easy on Wednesday

Gilts
Government security prices remained rangebound on Tuesday. The market witnessed lacklustre tradings owing to tight liquidity and firm call rates. Bond prices dipped in the morning by 5-10 paise due to a firm call rate and later recovered as the call rate eased below 6.00 per cent. Most of the bonds were trading in the afternoon at previous days closing level. The benchmark 10-year yield on the 9.81 per cent 2013 bond was at 5.8715 per cent in the afternoon trades, down from 5.8802 per cent of their morning highs, and almost unchanged from Mondays close of 5.8712 per cent. The 7.40 per cent 2012 ended higher at Rs 110.68/72 and the actively traded 11.50 per cent 2011 was quoted higher at Rs 138.26. The 7.46 per cent 2017 was quoted at Rs 113.66 and the 8.35 per cent 2022 was quoted at Rs 123.60.
FORECAST: Gilt prices to remain rangebound on Wednesday

Compiled by Abhijit Agrawal