Markets Report

Money market

Sentiment: Stable

Yields of medium-tenor government securities came off a tad.

Expectation of a steeper yield curve saw many players parking their funds at the repo window.

The yield on the benchmark 10-year security, 7.27 percent 2013, declined to 5.2676 per cent from 5.2750 per cent on Wednesday.

Call money rates closed at 4.50-4.70 per cent compared with 4.25-4.40 per cent on Wednesday.

Forex market

Market Sentiment: Stable

The rupee slipped to 45.9275/9325 per dollar from 45.9100/9250 on Wednesday due to redemption of State Bank of India's Resurgent India Bonds.

The annualised premium on the six-months dollar forward increased to 1.09 per cent from 1.02 per cent on Wednesday.

Outlook

The rupee is expected to hover in the 45.93-45.95 per dollar band.