The annual average solar daily variations of the eastward component of the geomagnetic field, Y, at the equatorial stations, Kodaikanal and Huancayo indicate an increase on disturbed than on quiet days. With increasing daily mean geomagnetic activity index Ci, there is a systematic increase of daily mean value of Y and the systematic decrease of the daily mean value of H, (northward component) at both the stations. The storm-time variations of the Y field are in opposite to the corresponding variations of the H field at both the stations. It is suggested that with increasing geomagnetic activity, the development of equatorial ring current is associated with corresponding increase of meridional currents at low latitudes. ¿ American Geophysical Union 1993