Interest rates rule comfortably

The overnight call money interest rates ruled quite comfortabely with lots of liquidity and almost a squarish trade at the interbank call money market on Tuesday.

The call rates opened at around 5 to 5.25 per cent level but eased further to settle down at 4 to 4.25 per cent towards the fag end. Most of the deals took place in the range of 4 per cent.

Absolutely easy conditions prevailed in the call segment as there was enough liquidity. During the first session of the day, hardly any borrowers were reported. But rest of the day the market trading was witnessed nearly squarish, a dealer said.

The primary dealers, Discount and Finance House of India extended market support to the tune of Rs 10 billion, while Securities Trading Corporation of India's total turnover amounted to Rs 5 billion, the sources said.

UNI