First-Half Net Up 11.21% For 1,251 Firms

MONEY MARKET REPORT

Interest rates in the inter-bank call money market remained stable yesterday with nearly all deals being conducted at eight per cent. Demand for funds was easily met by the adequate liquidity in the system.

"There was some pressure to bring down the rates below eight per cent for some deals during the day. However, the Reserve Bank of India's refinance facility ensured that rates would not fall below the eight per cent level," said a money market dealer.

Call rates opened at eight per cent in the morning and ruled steady with some downward pressure. Some deals were conducted at 8.05 per cent levels but the rates were range-bound between the eight and 8.05 per cent levels.

 

"This sort of a situation can be expected to continue unless some major action takes place.

The market is expecting a rate-cut soon and the mood is upbeat, so even in the coming days there should not be much pressure on the interest rates to move up," said a dealer.

The market received inflows to the extent of Rs 161.50 crore yesterday. Rs 148.62 crore was on account of coupon payments of the 11.64 per cent central government security while Rs 12.88 crore was due to the 6.50 per cent 2003 gilt.

CALL MONEY RATES July 26, 1999

In prt cent

Low High

16 July 7.50 9.25

21 July 8.00 8.25

26 July 8.00 8.05

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