Market Reports

Money market

Sentiment: Bullish

With the cut-off yield of 5.76 per cent for nine-year paper and 6.13 per cent for 25-year paper being in line with market expectations, sentiment in the gilts market got a boost.

There was 20-30 paise movement in long tenor papers and a 10 paise shift in medium tenor papers. The 9.81% 2013 paper was traded at 5.80 per cent.There was good demand for high coupon papers.

Liquidity was comfortable as repo subscriptions stood at around Rs 27,000 crore. Call rates moved in the range of 4.85-5.0 per cent.

Forex market

Market Sentiment: Bullish

The spot rupee strengthened to close at Rs 46.95/46.96 on dollar selling by exporters after opening at Rs 47.09/47.11. Six-month and one-year annualised premia closed down at 1.55 per cent and 1.58 per cent, respectively.

Outlook: The rupee is expected to open around Rs 46.95/96 on Wednesday.