Call Rate Around 8 Per Cent

MONEY MARKET REPORT

Interest rate in the inter-bank call money market opened at around 8-8.50 per cent yesterday and ruled in the region of 8.25 per cent. Call rate went down during the day and there were some stray deals even at 7.90 per cent levels. It, however, firmed up to close at around 8.50 per cent.

The weighted average call rate of the STCI was 8.17 per cent on a turnover of Rs 1300 crore. Outflows from the system on account of the RBI four day 8 per cent fixed rate repo was Rs 270 crore. Inflows on repo reversals amounted to Rs 165 crore. Prices continued their upward trend in the dated securities market yesterday. The revised price list put out by the RBI on March 18 triggered off considerable buying interest in the 12.69 per cent 2002 and 13.05 per cent 2007 papers from the apex bank , which were offered at Rs 104.47 and Rs 105.51 respectively. There was no stock of 13.05 per cent 2007 in the market, while the 12.69 per cent 2002 was available at Rs 104.40 levels in the market.

At the shorter end, the 13.5 per cent 1998 paper was dealt at Rs 100.10-12 and the 11 per cent 2002 at Rs 99.60. In general, market prices of government securities were not above the RBI price list levels. The T- bills segment was not very active. The T-bills maturing on April 10 was traded at 9.75-80 per cent levels.