Markets Report

Money market

Sentiment: Bullish

While the first half saw prices of government securities moving up by 25-30 paise in the 9-10 year segment on hopes of an ECB rate cut, in the second half there was a rally of 40 paise across maturities.

Call hovered around 4.92 per cent with repo subscriptions at Rs 18,000 crore.

The newly issued 9-year paper was heavily traded during the day.

There was some profit booking at higher levels.

Forex market

Market Sentiment: Volatile

The ECB rate cut and firm euro vs dollar led to the rupee closing at Rs 46.90/$ after reaching an intra-day low of Rs 46.9550 and a high of Rs 46.88. Six-month and one-year premiums moved to 1.85 per cent and 1.75 per cent, respectively.

Outlook: The dollar weakening against the euro will lead to spot rupee opening at Rs 46. 85/87.