Market Reports

Money market

Sentiment: Bearish

Medium tenor gilts fell by almost 50-70 paise as there was heavy selling pressure following the auction and OMO announcements.

Oil and UTI bonds also saw unloading in the corporate bond market.

Government papers to be issued as part of the centre state debt programme and the auctions also contributed to the bearish sentiment.

Overnights hovered around 4.95-5 per cent amid ample liquidity with repo subscriptions at Rs 30,000 crore.

Forex market

Market Sentiment: Bullish

Month-end dollar demand and short covering by firms saw the rupee end lower at 47.0550 before reaching lows of 47.07/09. The six-month and one-year annualised premiums closed at 0.85 per cent and 1.20 per cent.

Outlook: The rupee is expected to open at 47.05/06 as dollar demand is expected to continue till month-end.