Market Outlook

Money

Sentiment: Lacklustre

Participants stayed on the sidelines owing to uncertainty about Tuesday's rate cuts; volumes were low at around Rs 2,000 crore, against Rs 3,000 crore plus last week

But they have already built up positions on the expectation of a 50 basis points bank rate cut.

Prices of government securities were range bound in a band of three to four paise.

The benchmark 10-year paper was last traded at Rs 102.38, after moving in a band of Rs 102.36-44.

Call rates remained steady at 5.70-75 per cent on the back of ample liquidity; Rs 12,692 crore was accepted by the RBI in the repo market.

 

Some mutual funds were seen selling some of their securities to fund their requirements.

Forex

Sentiment: Cautious

The rupee closed on Monday at 48.42/43 per dollar, compared with Friday's 48.37/38.

Dollar purchases by a clutch of companies, including some oil firms, let the rupee down.

Demand for dollars outstripped supplies as some banks preferred to hold on to their greenbacks on credit policy eve.

Forward dollar premiums also ended higher, tracking the rise in the US unit's spot value against the rupee.

Traders looking to see if the RBI expresses its opinion on the value of the rupee or premiums in the credit policy.