Call Rate Slips To 6 Per Cent

MONEY MARKET REPORT

There was active trading interest in the secondary market for dated securities and prices continued on the upswing, marking a distinct reversal of sentiment. There was buying even in medium-term stocks by some nationalised banks.

The 11.95 per cent 2004, which was put on the sale window by the Reserve Bank of India (RBI) at Rs 100.31, was traded up to Rs 100.25 yesterday. The new loan 11.68 per cent 2002 also saw an increase in price and was dealt at Rs 100.24. Interest rate in the inter-bank call money market opened at around 6.40 per cent and ruled in the region of 6.25 per cent yesterday. The call rate closed lower at around 6 per cent. The NSE Mibid was 6.14 per cent (standard deviation 0.0352) and the Mibor was 6.37 per cent (standard deviation 0.0178). At the three-day fixed rate repo at five per cent, RBI received and accepted four bids for Rs 1,551 crore.

 

On the inflows side, there was around Rs 1,800 crore which came in on account of repo reversals.Among other securities, the 11.55 per cent 2001, which had settled at slightly lower levels after the spurt on Wednesday, went up again to trade at around Rs 100.30. "The market was expecting an on-tap issue after soon the four year paper auction. As there were no signs of this till yesterday, it has triggered off buying interest in other stocks," said a dealer.