Markets Report

Money market

Sentiment: Dull

• Gilt prices were off early lows on Tuesday on easy money market liquidity but volumes were low and trading sentiment dull.
• The 8.07 per cent 2017 bond closed high at 5.7180 per cent against Monday's close of 5.7084 per cent.
• Call money rates finished at 4.30-4.50 per cent on Tuesday, up from its previous close of 4.25-4.50 per cent.
• Bulk of the deals were struck around the repo rate of 4.5 per cent.

Forex market

Sentiment: Firm

• The rupee ended firm on Tuesday at 45.5350/5450 per dollar (45.5575/5675) on a wobbly dollar and an upward revision in India's debt outlook by S&P.
• The six-month forward premium ended at 0.13 per cent, down from the previous close of 0.24 per cent.

Outlook

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Rupee may see moderate gains on Wednesday as RBI will be keen to maintain India's export competitiveness.