A Down-To-Earth Giant Among Men

MONEY MARKET REPORt

The interest rate in the overnight money market closed slightly higher yesterday at 8.40 per cent as compared to 8.10 per cent on the previous trading day.

The call money rates opened at 8.15 to 8. 25 per cent, and by afternoon shot up to 8.25 to 8.40 per cent. Most deals were done between 8.20 to 8.35 per cent.

Institutional lenders said, "The call money rates were expected to be tight due to a large outflow of Rs 1,957.1 crore through the open market operation. Some nationalised banks were also borrowing which made the fund costly." Besides, the tight liquidity was due to absence of any inflow in the system.

The call money rates are expected to open at around 8.30 to 8. 50 per cent today. "There is sufficient liquidity in the system, but money is available at a price," said a dealer.

The prices of government securities was range-bound, although there was active trading. The RBI did not receive any bids for the six per cent fixed rate repo yesterday, while there was no inflow due to repo maturing.

An inflow of Rs 65 crore is expected today as coupon payment is due for 13.75 per cent government loan maturing on 2005.

In the securities market, the 11.75 per cent government loan maturing on 2006 was traded in the band of Rs 100.80 to Rs 100.86.

The 11.55 per cent government loan maturing on 2001 was traded at Rs 101.30 to Rs 101.32. E>