Gilts rose on hopes of EPFO rate cut

MARKETS REPORT

Outlook
The rupee is expected to open between 45.85 and 4.90 against the greenback on Wednesday.

Sentiment: Choppy

• The rupee opened at 45.45.73/74 per dollar and ended lower at 45.87/89 on dollar buying by foreign banks.
• Premiums on forward dollars went up. Annualised premiums on six-month and one-year dollars closed at 1.55 per cent and 1.4 per cent respectively.

Money market

Sentiment: Bullish

• Government security prices went up on expectations of a cut in the EPFO rate.
• Prices of long- and medium-term securities went up by 40-50 paise, while those of short-term gilts gained by 20-30 paise.
• The yield on the ten-year benchmark paper, 7.37 per cent 2014, closed at 5.81 per cent, compared with 5.89 per cent on Monday.
• Call money rates ended in the range of 4.20-30 per cent.
• Corporate bonds market remained dull.