Calls Continue Under 1 Per Cent

MONEY MARKET REPORT

Activity in the inter bank term money market is yet to pick up. There were some deals reportedly struck. Quantum of the deals was in the range of Rs 5 crore to Rs 10 crore. Banks were quoting nine per cent for three-month money. Interest rates in the inter bank call money market continued to rule at less than one per cent. Yesterday, the rates ruled in the band of 0.25 per cent to 0.75 per cent with most deals being struck at 0.50 per cent. There was not much activity in the T- bills segment. The recently auctioned 364-day T-bill was traded in the band of 8.90 to 9 per cent.

There was a reduction in the prices of short term securities. The volume of trades in the 13.50 per cent was unusually high.

The price of this security went down to Rs 101.90, only to recover to Rs 102.10 later. The price of the 13.50 per cent 1998 went down to Rs 103.30.

There was also a significant decrease in the price of the 13.80 per cent 2002. From a level of Rs 107 the price of this security fell to Rs 106.40. There were many quotes in the 13.05 per cent 2007 but not many

deals were struck.

While sellers were quoting in excess of Rs 101.50, buyers were quoting Rs 101.

Trading in the securities market is not expected to pick till the sale of the state loans. The market is also awaiting a decision by the Reserve Bank of India (RBI) to put the privately placed 13.05 per cent 2007 on its sale list.