Market Reports

Money market

Sentiment: Insipid

Yields on gilts edged up slightly during, with the 10-year benchmark closing at 5.9 per cent.

This followed profit booking by some participants.

Call rates ended flat at 4.75-5 % on the back of comfortable liquidity, reflected in Rs 12,540 crore being mopped up in the one-day repo.

Spreads onb corporate bond yields over government paper in the short-term segment compressed by around three to five points to 40-60 basis points.

Forex market

Market Sentiment: Bullish on rupee

The rupee rose vs dollar for the seventh consecutive day to 47.1575/1650, up 1.73 per cent since the beginning of 2003. Forward premiums eased for the second day in running to near all-time lows.

 

Outlook: The rupee is expected to hold in the 47.1450/1650 band as the dollar