Calls Confined To A Narrow Band

These apart, another outflow of Rs 1,250 crore towards the fourth instalment payment of the 13.85-per cent 2006 paper is due today "This will keep rates in the money market tight," said dealers.

Most lenders were reported to be quoting high rates, despite the fact that money was available in the system. As a result of the high call rates, trading in the securities market remained dull. In the 13.5-per cent 1998 security, deals were conducted at a price of Rs 101.44. In the case of the 91-day treasury bills, sellers were quoting a rate of 10.25 per cent on the paper maturing on September 30. The Zero-coupon 1999 paper was dealt at Rs 72.95.

 

Reports that a 0.5-percentage point cut in the cash reserve ratio (CRR) was in the offing continued float in the market. The overwhelming opinion was that the expected reduction would be announced in the forthcoming credit policy.