Markets Report

Money market

Sentiment: Moderate

Heavy selling gripped the gilts market in wake of the state auction and the ongoing US Fed meeting.

Prices of medium and long tenor bonds fell by 5-7 paise.

The 10-year benchmark 9.81 per cent 2013 hovered at 5.53 per cent.

Overnight rates ruled around 4.75 per cent and repo subscriptions stood at Rs 23,000 crore.

Trading in short-term papers was stagnant.

Forex market

Market Sentiment: Bullish

The spot rupee in the absence of aggressive intervention closed at 45.88 to a dollar.

Forward premiums were soft with six-month and one-year closing at 2.01 per cent and 1.95 per cent.

Outlook

The spot rupee is likely to open above 45.90 to a dollar.