Market Reports

Money market

Sentiment: Bullish

Yields on long-dated government securities fell on Thursday evening on hopes that cash-flush investors will flock to buy gilts at the twin auction scheduled early next week, dealers said.

The 10-year benchmark, the 9.81 per cent 2013 paper, was nearly unchanged at 5.8668 per cent. It had closed at 5.8680 per cent on Wednesday.

The 6.25 per cent 2018 bond was dealt at 6.0264 per cent, down from 6.0673 per cent before the twin auction announcement.

The fall in this stock could lead to a fall in yields on other, similar-dated paper. Traders are buying this stock on hopes that investors like mutual funds and co-operative banks will bid for it later.

Forex market

Market Sentiment: Dull

The rupee ended flat at 47.3525/3575 per dollar on Thursday, with state-owned banks absorbing surplus dollars after foreign banks stopped their purchases, which had caused the unit to dip slightly earlier in the day. The six-month dollar closed at 2.30% (Wednesday 2.27%), while the one-year premium ended flat at 2.5%.

Outlook: Light trading is expected in the spot and forward markets ahead of an extended weekend, with the markets closed on Good Friday.