Gilts cheer new transaction tax structure

MARKETS REPORT

Outlook
The rupee is expected to open between 46.03 and 46.10 against the dollar on Thursday.

Sentiment: Bullish

• The rupee opened at 46.1150 per dollar and closed higher at 46.04/05. It touched an intraday high of 46.1550.
• Annualised premiums on one-month and six-month dollars closed at 1.92 per cent and 1.62 per cent respectively.

Money market

Sentiment: Bearish

• The government securities market cheered the finance ministry's decision to exempt the debt market from the transaction tax.
• Prices of long- and medium-term gilts went up by Re 1.
• The yield on the ten-year benchmark paper, 7.37 per cent 2014, closed lower at 5.84 per cent
• Call money rates ended flat at 4.20-4.30 per cent
• Repo subscriptions stood at Rs 5,200 crore.