Markets Report

Money market

Sentiment: Weak

Heavy selling by mutual funds led to a fall in prices of government securities by about 10 paise across the board.

While long term papers witnessed selling pressure, there was good buying interest in short term papers.

The yield on the benchmark 10-year bond rose to 5.7276 per cent.

There was abundant liquidity in the system, with repo subscriptions to the tune of Rs 32,000 crore.

Call rates ended softer at 4.50/4.75 per cent.

Forex market

Market Sentiment: Bullish

Heavy FII inflows led the rupee to close at 46.2875 after it opened at 46.3250.

Heavy cash demand softened forward premiums. Six-month premium closed at 2.50 per cent.

Outlook :The rupee is expected to open at 46.28/29 to the dollar on Wednesday.