Call money closes flat at 6.10/6.20 per cent
Mumbai, Dec 5 (UNI) Call rates were unchanged from their previous close at 6.10-6.20 per cent, dealers said.
Sufficient Rupee surplus coupled with modest demand helped the rates to remain soft.
Liquidity kept improving as was evident at the LAF window which saw the RBI accepting 36 bids amounting to Rs. 32,280 crore at the one-day reverse repo auction. The reverse repo numbers have steadily increased over the week thereby inspiring confidence to the traders.
The CBLO segment saw 330 bids worth Rs.19,894 crore being transacted in the range of 5.70-6.02 per cent.
Systemic liquidity is expected to remain comfortable in the week ahead. As a result, inter bank rates are likely to hover around the current levels.
However, the rates may inch up and touch the 6.50 percent levels in the upcoming week as the GOI bond auction and the advance tax outflows is likely to weigh on sentiment. The mega IPO issue of Cairn India Ltd. would further drain the system of cash and test the liquidity.
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