42-Member Karnataka Ministry Sworn In

MONEY MARKET REPORT

Interest rates in the overnight money market ruled in a narrow band of 8.10 per cent to 7.90 per cent yesterday as the demand for funds appeared to have dried. With today being reporting Friday, the call money rates are expected to decline.

The rates opened at around 8.10 per cent and eased to close at 7.90 per cent. Most deals were done at around 8 per cent, said dealers.

Dealers expect call rates to rule in the 7 to 8 per cent band today and said the rates could even fall below 7 per cent towards closing.

 

Prices of securities were range-bound yesterday. However, as the news of the Central government privately placing Rs 4000 crore with the Reserve Bank of India (RBI) began to take rounds in the market, prices of long-term papers saw an upward movement. The Centre placed Rs 4000 crore of 12.60 per cent 2018 with the apex bank at Rs 101.30 yesterday.

There was active trading in long-dates securities. The 12.40 per cent 2013, which was traded at Rs 101.31 prior to the announcement of the auction, rose by nine paise to close at around Rs 101.40.

Dealers said prices of long- and medium-dated securities could see some appreciation today.