Markets Report

Money market

Sentiment: Bullish

Gilts market posted a record volume of around Rs 14,000 crore.

The 10-year benchmark 9.81 per cent 2013 closed lower at 5.29 per cent.

Gilt prices across the board went up by 70-80 paise, while treasury bills yields came down from 4.98 per cent to 4.58 per cent.

Call rates ruled bit tight owing to state loan and demand for funds to invest in gilts.

Corporate bonds also witnessed good trading.

Forex market

Market Sentiment: Volatile

The spot rupee weakened to close at 45.90/92 (45.83/84 on Friday)on the back of increased demand for dollars for covering short positions following the bomb blasts in Mumbai.

 

Forward premiums ended soft with the six month closing at 1.85 per cent.

Outlook: The spot rupee is expected to open in the range of Rs 45.89/91 against the US dollar on Tuesday.