Rupee gains; economy still a dampener

The rupee recovered from lows to snap two sessions of losses on Tuesday on bunched up dollar sales related to foreign fund inflows. Foreign funds have bought $16.5 billion worth of shares so far this year. Strong global liquidity has pushed stocks to lifetime highs even as economic indicators continue to remain grim. The data comes on the heels of factory output shrinking for the third straight month. The partially convertible rupee closed at 61.62/63 a dollar compared to 61.73/74 on Friday.

Bonds remain bearish

Government securities (G-secs) remained bearish on selling pressure from banks and companies. The 7.16 per cent G-sec maturing in 2023 dropped to Rs 89.93 from Rs 90.15 previously, while its yield rose to 8.74 per cent from 8.70 per cent.

Call rates end steady

Call money rates ended stable at the overnight call money market as demand from borrowing banks matched supplies. The rates ended stable at seven per cent. It moved in a range of 8.70 per cent and seven per cent.