Market Reports

Money market

Sentiment: Dull

Despite a positive sentiment, the gilts market remained lacklustre owing to lack of strong buying demand.

Prices fell in short-term papers, while long-tenor gilts witnessed a 5-6 paise increase.

The 10-year state government paper was well subscribed by all participants given the good yield differential.

The 9.81 per cent 2013 paper was traded at 5.76 per cent.

Call rates ended higher at 4.90/5.05 per cent following a strain on liquidity.

Forex market

Market Sentiment: Bullish on rupee

The spot rupee closed lower at Rs 46.6850 after reaching a new high of Rs 46.65. Forwards remained stiff as there were not many export cancellations. The six-month and one-year premiums closed at 2.4 per cent and 2.08 per cent, respectively.

Outlook

The rupee is expected to open in the range of Rs 46.67/69 against the US dollar on Friday.