MONEY MARKET REPORT
Interest rates in the overnight call money market tightened from Wednesday's level of 8-8.10 per cent to 9.5-9.75 per cent at close yesterday. According to dealers, this was largely due to a demand-supply mismatch as some traditional lenders were not actively present in the market.
Call money rates should cool down today to near eight per cent as it is a reporting Friday.
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Call money rates opened easy in the 8.05-8.2 per cent range but tightened sharply to 9.25-9.5 per cent after funds disappeared from the market.
Most of the deals were transacted at the 9-9.25 per cent levels. Reportedly some stray deals were also made in the 10-10.5 per cent band, though call money rates closed between 9.5-75 per cent.
According to dealers, it was possible that some government withdrawal from the system had taken place which led to shortage of funds. The Reserve Bank of India (RBI) has received no bids for its fixed rate six per cent, five-day repo tender.
Inflows to the extent of Rs 467.84 crore are expected today. Of this, Rs 400 crore would be due to the redemption of a 364-day treasury bill, while the remaining amount would be because of a coupon payment on the 13.75 per cent government security maturing in 2005. eta name="description" content="NSE REPORT">