Call Rules Range-Bound

MONEY MARKET REPORT

Interest rate in the inter-bank overnight money market did not show any signs of easing as players continued to demand funds to meet reserve requirements and forward premiums rose again on further weakening of the rupee.

Correspondingly, there was a dip in security prices by 5-10 paise with action restricted up to the five-year maturity papers. Call rate opened at 7.5-8 per cent, touched a high of 8.25 per cent and dipped marginally to 7.25-7.5 per cent as lenders entered at this level. Call rate closed higher at around eight per cent. "This should ease to around 6.90 per cent today," said a dealer. The weighted average call rate of STCI was 7.78 per cent on a Rs 2,300 crore turnover. At the RBI fixed rate repos, there was one bid for Rs 175 crore. In the secondary market for government securities, the 11.55 per cent paper maturing in 2001 was traded at Rs 100.14 but value-tomorrow deals were done for Rs 100.19. The 11.78 per cent 2003 was traded at Rs 100-100.02.

 

The RBI has reinstalled the 11.95 per cent 2004 stock on its sale window at Rs 100.32 against Rs 100.31 earlier. As per the price list effective from yesterday, the 11.15 per cent 2002 is being offered at Rs 98.41, the 11.19 per cent 2005 at Rs 96.39, the 11.75 per cent 2006 at Rs 98.62 and the 12.15 per cent 2008 at Rs 99.91.