Markets Report

Money market

Sentiment: Moderate

Gilt prices remained flat amidst profit booking by dealers and expectations of an open market operation.

Prices of medium and long tenor papers fell by 5-10 paise.

The ten-year benchmark paper 9.81 per cent 2013 closed at 5.5255 per cent.

Call rates ranged between 4.9 and 5.0 per cent as the abundant liquidity in the banking system was matched by demand on account of the approaching reporting Friday.

Forex market

Market Sentiment: Bullish

Backed by FII inflows, the rupee closed at 45.95/96 against the US dollar after opening at 46.01/03.

The six-month forward premium closed at 2.07 per cent.

Outlook

The spot rupee is expected to open at 45.94/95 but is likely to reach 45.90 owing to the dollar