Re ends flat on RBI intervention, Gilts plunge

MARKETS REPORT

Outlook
The spot rupee is likely to open in the range of 45.50-62 against the US dollar on Tuesday.

Market Sentiment: Bearish

• The spot rupee opened at 45.48/53 against the US dollar and closed at the similar levels after the RBI stepped in to support the rupee at 46.00.
• Discounts on forward dollars subsided to a large extent after interbank positions were cleared off. Six month and one year premiums closed at -0.17 per cent and -0.05 per cent respectively.

Money market

Sentiment: Bearish

• Rapid selling by FIIs led to fears in the market that liquidity will be affected in the medium term.
• Prices fell by almost Re 1 in longer-term gilts, while they dipped by 30-40 paise in medium term papers.
• The ten-year benchmark yield closed at 5.25/26 per cent after a reaching a high of 5.28 per cent.
• Call rates remained comfortable while almost Rs 28,470 crore went into RBI repos.