Geomagnetic solar and lunar daily variationsS andL, at Alibag, India are derived, by the well-known Chapman-Miller method, from the series of homogeneous mean hourly magnetic data of the years 1932 to 1972. The data for all the three elements — declinationD and horizontal and vertical intensitiesH andZ — are analysed, by dividing the data suitably for a study of the seasonal variations, the effect of the changes in the solar and magnetic activities onS andL, the oceanic dynamo contribution toL, and their interactions with each other. The main results are as follows. (i) ForS the daily pattern and its seasonal progression conform to the type expected from a northern-hemisphere station. On the other hand, the amplitudes of all the four harmonics ofL systematically have higher values in winter, and inD andZ the harmonics show large phase differences between summer and winter. The pattern ofL in winter suggests that the lunar current system consists of a single set of vortices in the summer hemisphere rather than the conventional vortices, one set in each of the hemispheres. (ii) Solar-cycle modulation on the solar ranges as well as on the amplitudes of the first three harmonics ofS is greater than that expected solely from the increase in E-region conductivity, whereas the corresponding modulation onL is comparable to that on the E-region conductivity. (iii) With increasing magnetic activity the first harmonic ofS shows an increase, and the first three harmonics ofL indicate a general decrease, in amplitude. (iv) Of the variability inS 96%, but inL only 32%, is found to be accounted for by the combined effect of the variations in the solar and magnetic activities.