Re plunges, Gilts slide

MARKETS REPORT

Forex market

Market Sentiment: Bearish

• The rupee opened at 45.38/40 per dollar and ended lower at 45.48/50. It touched an intraday low of 45.60 per dollar.
• Discounts on forward dollars widened on exporters' dollar sales. Annualised discount on six-month and one-year dollars closed at 0.50 per cent and 0.15 per cent respectively.

Money market

Sentiment: Bearish

• Gilt prices slid across the board on uncertainty over interest rates and inflation.
• Prices of long-term securities fell by 50-60 paise, while those of medium-term gilts witnessed a 35-40 paise fall.
• The yield on the ten-year benchmark paper, 7.37 per cent 2104, closed at 5.25 per cent., compared with 5,21 per cent on Thursday.
• Call money rates shot up to 6.5 per cent on demand from banks, which were short of funds for reserve requirements and state loans outgo.
• Repo subscriptions stood at Rs 10,000 crore.