Economic Survey's positive pronouncements lifts Re

MARKETS REPORT

Forex market

Outlook: The rupee is expected to open at 45.85/90 per dollar on Thursday.

Sentiment: Bullish

The rupee opened at 46.02/04 per dollar and ended higher at 45.85/88 on exporters' dollar sales and the Economic Survey's positive pronouncements about foreign investments.

Premiums on forward dollars dipped. Annualised premiums on six-month and one-year dollars ended at 0.96 per cent and 0.95 per cent respectively.

Money market

Sentiment: Bearish

Government security prices tanked as the Economic Survey signalled firming up of interest rates.

Prices of long-term securities fell by 45-50 paise, while those of medium-term gilts slid by 20-35 paise.

The yield on the ten-year benchmark security, 7.37 per cent 2014, closed at 5.73 per cent, compared with 5.70 percent on Tuesday.

Call money rates ended at 4.20-30 per cent.

Repo subscriptions stood at Rs 4,660 crore as players preferred to stay liquid for auction payments on Wednesday.

Cut-off yields on 91-day and 364-day treasury bills were set lower than the market's expectations at 4.44 per cent and 4.59 per cent respectively.