Markets Report

Money market

Sentiment: Bullish

• Prices of government securities rallied on expectations of good buying demand in the new year from pension funds and foreign banks.
• Prices of long-term papers went up by 30-35 paise, while those of medium-term gilts witnessed a rise of 20 paise.
• The yield on the benchmark 10-year security, 7.27 per cent 2013, ended at 5.10 per cent.
• Call rates ended at 4.40-4.50 per cent.
• Subscriptions at repo auctions stood at Rs 29,000 crore.

Forex market

Sentiment: Moderate

• The rupee opened at 45.64 and slipped to 45.72 due to month-end demand for dollars. It, however, ended the day higher 45. 56 per dollar.
• Demand for cash dollars pushed down the premiums on forward dollars. The annualised premium of one-month dollar ended at 0.16 per cent.

Outlook

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The rupee is expected to open in the range of 45.50-60 per dollar on Wednesday.