Money market |
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Sentiment: Nervous
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| Yields on gilts and corporate bonds jumped by about 10 bps and 30 bps, respectively. |
| Volume in the gilt market was low at Rs 1600 crore, while it was a measly Rs 20 crore in the corporate bond market |
| Fear of an imminent US strike on Iraq led to sell-offs in the market; but a statement by an RBI official that the central bank will intervene to curb volatility led to some buying. |
| Call money rates closed a tad higher at 5.50-5.75 per cent. |
| The 7.40 per cent 2012 gilt closed at Rs 106.75 (6.41 per cent). |
| The benchmark 9.81 per cent 2013 gilt was last dealt at Rs 124.80 (6.45 per cent). |
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Forex market |
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Market Sentiment: Edgy
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| The rupee ended a tad weaker at 47.6675/6750 per dollar as banks bought dollars expecting the rupee to depreciate in the event of a war. The six-months forward premiums ended up at 3.68 per cent (3.58 per cent) on importer covering. |
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Outlook: Trading in the forex market on Wednesday will be dictated by the action/ stand taken by the US against Iraq. The market is closed today on account of Holi. |
