Call Rates Rule In 8.5-9 Band

MONEY MARKET REPORT

The call money rates opened in the region of 8.75 - 9 per cent, ruled in the band of 8.5 - 9 per cent and closed at 8.75 per cent. There were some stray deals struck in the morning at 9.25 per cent.

The weighted average call money rate of the Securities Trading Corporation of India (STCI) was 8.71 per cent and the Mibor was 8.82 per cent.

Some of the public sector banks who were lenders till date have turned borrowers in the last couple of days. This is because these banks had some repayments coming up and they had to borrow to meet their commitments.

 

The RBI mopped up Rs 312 crore through repos. At the fixed repos rate of 7 per cent for 3 days RBI received 3 bids which were accepted in full.

The prices of government securities were more or less at the same level or declined by 10 - 20 paise. The price of the 12.50 per cent 2004 hovered in the region of Rs 106.30, the price of the 10.85 per cent at Rs 99.90, the price of the 12.14 per cent 2000 at Rs 102.50 - Rs 102.75 and the 11.83 per cent 2003 at Rs 103.

The traditionally trading banks stayed away from the market and the public sector banks are not keen to sell their securities because the prices are ruling low. This has caused trading volumes to plummet.