Overnights Stay Range-Bound
MONEY MARKET REPORT
Overnight interest rates in the inter-bank call money market remained range-bound. Call rates opened at around 8.5-8.75 per cent, softened to around 8.25-8.5 per cent, went up to a high of 9 per cent, but recovered to close around 8.5 to 8.75 per cent.
Most deals were done between 8.5 and 8.75 per cent. Stray deals were transacted at 8.9 to 9 per cent on the higher side, and 8.25 per cent on the lower side.
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The weighted average of the Securities Trading Corporation of India (STCI) was 8.58 per cent on a turnover of Rs 1,800 crore. The Mumbai Inter-Bank Offer Rate (Mibor) closed at 8.67 per cent. Liquidity remains fairly easy and no change in the supply of funds is expected this fortnight.
Trading in dated securities remained moderate and prices drifted southwards. The 11.83 per cent GoI 2003 drifted to trade at Rs 104.10 at close.
The 10.85 per cent GoI 2001 opened at Rs 101.25, but closed at Rs 101.07. The 11.75 per cent GoI 2001 opened at Rs 103.80 and closed at Rs 103.47.
The 6 per cent capital-indexed bonds saw lukewarm response as it is still available on tap. The repos auction yesterday received no response from banks.