Rupee rebounds, Gilts rally

MARKETS REPORT

Outlook
The rupee is expected to open in the range of 45.93-45.98 against the greenback on Monday.

Sentiment: Bearish

• The rupee opened at 46.10/13 per dollar and went down to 46.26 on demand from foreign banks. It, however, closed higher at 45.95/97 on RBI intervention.
• Premiums on forward dollars went up. Annualised premiums on six-month and one-year dollars closed at 1.7 per cent and 1.5 per cent respectively.

Money market

Sentiment: Bullish

• Government security prices rallied on below-than-expected headline inflation rate at 6.16 per cent.
• Prices of long-term securities rose by 40-50 paise, while those of medium-term gilts inched up by 10-15 paise.
• The yield ten-year benchmark security, 7.37 per cent 2014, closed lower at 5.95 per cent.
• Call money rates ended at 4.20-4.30 per cent.
• The corporate bonds market remained lacklustre.