Market Reports

Money market

Sentiment: Very positive

Yields on government securities crashed as Rakesh Mohan, the RBI deputy governor, said he was comfortable with appreciation in the rupee.

Trading was done only for T+1 settlement period.

There was good price differential among medium- and long-term papers with prices moving up by 30-40 paise.

The price of 9.81 per cent 2013, the benchmark paper, went up with the yield levelling at 5.82 per cent.

Forex market

Market Sentiment: Bullish on rupee

The market was volatile following thin trading because of public sector bank strike. The rupee closed at 46.8500/8600 against the dollar after touching an intraday high of 46.7550. Forward premiums declined further.

 

Outlook: The rupee is expected to trade in the range of 46.75/85 against the greenback. Forward premiums may dip further.