The Hindu Business Line : Securities rise; rupee stable

MUMBAI: Despite the announcement of a higher inflation figure, at 7.76 per cent in the week-ended November 6, bond prices rallied by around 40 paise across maturities on expectations of an easing in crude oil prices leading to lower inflation in the coming weeks.

The 7.30 per cent 2015 paper went up to Rs 102.40 after opening at Rs 102. The 7.40 per cent 2012 paper opened at Rs 101.70/75 and got dealt up to Rs 102. The 7.27 percent 2013 opened at Rs 100 and got dealt up to Rs 100.70/75.

"There is a good amount of buying interest emerging on the short and medium end as the papers are looking good on the yield curve," said a bond dealer.

Call rates eased to settle marginally below 6 per cent levels.

In the CBLO market, 165 trades were conducted amounting to volumes of Rs 6,378.20 crore in the rate range of 5.70 per cent to 6.06 per cent.

In the three-day repo under LAF, the RBI received and accepted 34 bids amounting to Rs 16,195 crore at the rate of 6 per cent.

The rupee closed at 45.08/10 in a lacklustre forex market on Friday, almost unchanged from Thursday's close of 45.0750/0850.

"The central bank is holding the rupee in a tight band. So although there are abundant dollar supplies it isn't appreciating very sharply. Today it moved in a narrow band of 45.08-15," said a dealer with a private sector bank.

In the forwards market, the six-month premia closed at 1.72 per cent (1.23 per cent) and the premia for one year closed at 1.41 per cent (1.14 per cent).