Marets Reports

Money market

Market Sentiment: Bearish

A cautious outlook on interest rates, the shifting of portfolio durations to shorter term papers and concern expressed by the Reserve Bank governor over the flat yield curve triggered selling in gilts.

Prices of medium and long-term papers fell by 50- 60 paise.

The ten-year benchmark 9.81 per cent 2013 closed higher at 5.58 per cent as against 5.54 per cent on Thursday.

Call money rates hovered in a 4.95-5.0 per cent range.

Corporate bonds witnessed heavy selling, with yields inching up by 1-2 paise in long tenors.

Forex market

Market Sentiment: Moderate

The spot rupee opened at 45.85/87 and edged up to close at 46.83/84 backed by inflows from FIIs and exporters.

 

The six-month forward premium closed at 1.96 per cent.

Outlook

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The spot rupee is expected to open in the range of 45.82/85 against the US dollar on Monday.