its overnight Mibid and Mibor rates due to strike in the banking sector.
FORECAST: Call rates seen steady on Thursday.
The rupee continued its three-day gaining streak, but at a lesser pace, by moving up by four paise against the dollar in a volatile market. The rupee close at 47.86/87 against the previous close of 47.90-91, on the back of sustained dollar inflows from exporters and investors. With this, the total gain in the three consecutive sessions is about 28 paise. The rupee opened at 47.88/89, went up to 47.74 and later went up to 47.90/91, before closing down at 47.86/87. But for the intervention by state-owned banks, the rupee would have gained even more, a dealer said. The market is awaiting the comments of US Federal Reserve chief Alan Greenspan before a Congress committee at 13.30 GMT, a dealer said. In the forwards market, there was a reversal in the anomaly in 6-month and 12-month premiums witnessed on Tuesday. Meanwhile, the RBI fixed its reference rate for dollar at 46.76 against the previous rate of 46.94.
FORECAST: The rupee seen gaining on Thursday.
Forward premiums closed almost at the previous day levels, except in the long-end, in a volatile market. The peculiar condition of the 6-month annualised premium surpassing that of the 12-month forwards witnessed on Tuesday has been reversed. Both the six- and 12-month annualised premia were at 0.30 per cent (0.48 per cent) and 0.36 per cent (0.35 per cent) respectively. The far forward of April 2004 opened at 12-14 paise, later went down to 6.50, only to spiral up to 22 paise, before closing at 17/18 paise. The exporters booked profit in latter trades by selling the forwards bought earlier, a dealer said. The premium for May 2003 closed at the previous level of 1.00/50 paise. The benchmark six-month dollar premium, payable at end-October, closed at 8/9 paise (8.00/50 paise). In month-wise premia in the far forwards, the March 2004 dollar and April dollar closed at 15.50/16.50 paise (12/13 paise and 15/16 paise) respectively.
FORECAST: Premiums seen falling on Thursday.
The government securities prices gained by 15-45 paise, even as the RBI official had ruled out a repo rate cut for now. Opening at lower levels levels, the G-Secs continued their northward journey to surge above the Tuesdays levels towards the closing time. Referring to RBI deputy governors comment that the repo rate would not be cut, a dealer said The case for repo cut is getting strengthened by the day backed by the rupee spiral. The cut in repo rate seems not far away, a dealer said. The benchmark 10-year 9.81% paper closed at 129.94 (129.68). The 11.40% 2008 shorter maturity paper closed at 127.55 (127.10). The 7.40% 2012 bond closed at 111.15 (110.94). The 8.07% 2017 bond closed at 118.83 (118.54). The 8.35% 2022 paper closed at 123.32 (123.10). On the NSEs WDM, volumes of Rs 5,679 crore were reported, despite strike.
FORECAST: Prices seen rising on Thursday.
Compiled by BSS Reddy