Call Rate Dips To 5.50-75 Per Cent

MONEY MARKET REPORT

The interest rate in the inter-bank money market opened higher at around seven per cent but moved down to rule between 5.75-6.25 per cent yesterday. The call rate closed lower at 5.50-5.75 per cent. This rate represents cost of three-day money as today is a holiday. The overnight rate should hover around 6 per cent next week, dealers said.

The weighted average call rate of the STCI was 5.68 per cent on a turnover of Rs 2,700 crore. At the three-day fixed rate repo at five per cent, the Reserve Bank of India received three bids for Rs 2,001 crore. At the auction yesterday, there was around Rs 2,500-crore worth of bids rejected which gives an indication as to the surplus in the system.

The dated securities segment was subdued but saw a slow and steady rise in prices by 5-10 paise yesterday.

This improvement is likely to continue next week too. Much, however, depends on movements in the forex market. The new security 11.78 per cent 2003 was traded at a premium of 5-10 paise, the 11.55 per cent 2001 at Rs 100.26 and the 11.68 per cent 2002 at Rs 100.24.