ISSN (Online) - 2349-8846

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Equilibrium Undisturbed

Decline In Oilseeds Reversed DIVERGENT CONDITIONS prevailed in the oils and oilseeds market. The downtrend noticed in groundnut and groundnut oil in August was reversed and there was a rise in prices in all the trading centres. The reversal was understandable. Prices of groundnut oil had declined sizably in the second half of August. This led to the expectation that prices would not move down any further. As a result, buyers

Squarish but Tight

In the narrow interbank call money market in Bombay last week — "narrow," because the volume of fresh money transacted continues to be small — conditions tended to become somewhat tight though the call rate was maintained at four per cent per annum. There were no transactions at lower rates and lenders tried hard to bid up the rate to a high perch by squeezing down supply.

Change in Expectations

Contrary to expectation, the easy spell in the interbank call money market in Bombay has been sustained. Fears of a shrinkage of supplies, following advance quarterly tax payments on September 1, have been proved false. Indeed, at the time of writing this the market appears to be easier than ever before.

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