Re volatile, gilts rangebound

MARKETS REPORT

Forex market

Outlook: The spot rupee is expected to open in the range of 44.68-72 against the US dollar.

Sentiment: Volatile

• The spot rupee opened at 44.55/60 to a dollar. It ruled in a 44.82 to 44.41 band before closing at 44.70/72 to a dollar.
• Forward dollars dipped into deeper discount.

Money market

Sentiment: Rangebound

• Gilt prices remained rangebound throughout the day but perked up following results of the exit polls for the 3rd phase of elections on Wednesday. There were indications that 55 out of 80 seats might go to the National Democratic Alliance.
• Prices went up by 10-15 paise in the medium term.
• The ten-year benchmark paper 7.37 per cent 2014 closed at 5.11 per cent.
• While call rates remained below 4.5 per cent, repo subscriptions were around Rs 16,000 crore.