Money Market

Sentiment: Bearish

Yields on gilts ended about 10 basis points higher compared with their Tuesday close.

Profit-booking by listed banks and primary dealers nudged the yields up.

The benchmark 9.81 per cent 2013 gilt, which closed Tuesday at Rs 127 (6.205 per cent), opened weaker at Rs 126.50 (6.26 per cent), fell to Rs 125.50 (6.38 per cent), and gained on bargain-hunting at lower levels to close at Rs 126 (6.31 per cent).

Corporate bond yields were quoted 10 basis points lower in thin trades.

The 6.30 per cent 2007 HDFC paper, which in the morning was quoted at 7.10 per cent, was quoted lower at 7 per cent towards close.

Call money ended easy at 4.80-5.00 per cent as against the pervious close of 5.20-5.50 per cent.

At the one-day repo auction, the RBI received 22 bids aggregating Rs 9790 crore; it accepted all the bids at the repo rate of five per cent.

Outlook: The gilts market will continue to see profit sales coupled with bargain buying. call money will rule easy.

Forex market

Market Sentiment: Bullish on rupee

The rupee ended at an 18-month closing high of 47.6350/6400 per dollar on the back of good dollar inflows. It