Markets Report

Money market

Sentiment: Bearish

Heavy selling resulted in a 5-6 paise dip in the prices of long-term gilts. The actively traded 7.27 per cent 2013 paper was quoted lower at Rs 111.87/89.

The rise in the 10-year US treasury bond yield from 3.65 per cent to 4 per cent hit the sentiment. The 10-year, benchmark 9.81 per cent 2013 gilt government paper closed lower at 5.71 per cent.

Call rates moved in the 4.90-5 per cent range owing to ample liquidity. Repo subscriptions to the tune of Rs 24,735 crore were witnessed on Wednesday.

Forex market

Market Sentiment: Volatile

The spot rupee opened lower at 46.20 with the dollar strengthening globally. The currency hit an intra-day low of 46.38 and closed at the opening level.

Forward premiums firmed up with the six-month premium closing at 2.65 per cent.

Outlook

The rupee is expected to open on Thursday at 46.1530.