Calls Rule In 8.75-9% Band

MONEY MARKET REPORt

Interest rates in the inter-bank overnight money market opened in the region of 9 to 9.50 per cent and ruled in the 8.75 -9 per cent band.

It then came down by the end of the day to the 6-7 per cent range. Liquidity was abundant and consequently the rates came down by the end of the day.

Yesterday, the Securities Trading Corporation of India (STCI) announced for the first time its call reference rate.

The weighted average call rate at which STCI struck its deals was at 8.40 per cent. The Mibor average rate was 8.82 per cent.

In the treasury bills segment, there was not much activity. In the morning, activity in the securities market was described by a primary dealer as dull, but by the end of the day, sentiment turned upbeat. There was also an increase in the volumes.

The price of the 12.59 per cent paper maturing in 2004 hovered in the region of Rs 104.91, the price of the 11.83 per cent 2003 crossed Rs 102 and the 12.50 per cent 2004 was traded around Rs 104.45 and Rs 104. 50.

Among other securities, the 13.40 per cent 1999 was traded at Rs 105.85, the 10.85 per cent 2001 was traded at a discount of 10 to 20 paise and the 13 per cent FRN 1999 was traded at Rs 104.80.