Money market |
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Sentiment: Bullish
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| Yields on gilts and corporate bonds came off by 5-10 basis points on the back of easy liquidity and aggressive buying by a large state-owned bank. |
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| In absolute terms prices of medium and long dated gilts rose by about 60 paise and one rupee, respectively. |
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| Call money closed easy at 4.75-5.00 per cent even as the RBI accepted 80 per cent (Rs 21,324 crore) of repo bids aggregating Rs 26,655 crore at the one-day repo auction. |
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Forex market |
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Market Sentiment: Bullish
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| The rupee ended weak at 47.46/47 owing to a dollar shortage as demand for FCNR loans increased. The three-months forward premium closed at 1.85 per cent, while the six-month forward premium closed at 2.20 per cent. |
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Outlook: With FCNR loans in demand and importers buying dollars forward, the rupee is expected to hover in the 47.44-47.49 band to a dollar. |
