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Call Rules In 9.10-9.40% Range

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BSCAL

MONEY MARKET REPORT

Interest rate in the inter-bank overnight money market opened between 9-9.25 per cent and ruled in the 9.10-9.40 per cent range. Call rate remained in this range throughout the day and went on to close at 9-9.25 per cent. The weighted average call rate of the Securities Trading Corporation of India (STCI) was 9.15 per cent on a turnover of Rs 1,400 crore.

Borrowing banks have met their funding requirements through fortnightly repos done over the last week and this could be one of the reason why call rates have not moved up much. It is also possible that banks are maintaining only 85 per cent of their product requirement this week in anticipation of a fall in rates next week, said a market player. Yesterday, the 10-day and 11-day repos were done at 9.75-10 per cent.

 

So far, the Resurgent India Bonds (RIB) inflows into the country has not had much of an impact on liquidity as the money is being held between the State Bank of India (SBI) and the Reserve Bank of India (RBI). Over the past two days over Rs 7,500 crore have been parked with the RBI at the fixed rate repos. Yesterday, the RBI received two bids for Rs 2,401 crore at the repos and on Monday it had received four bids for Rs 5,320 crore. Prices of government securities fell on weaker sentiment, with the 11.55 per cent 2001 being traded at Rs 100.07 and the 11.68 per cent 2002 at a low of Rs 100.02.

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First Published: Sep 02 1998 | 12:00 AM IST

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