Markets Report

Money market

Sentiment: Weak

• Gradual profit booking pulled down prices of gilts. This is despite an abundance of liquidity.
• Long-term prices fell by 20-30 paise, while medium-term prices dipped by 10-15 paise.
• Call rates ended comfortable at 4.50 per cent. Repo subscriptions stood at Rs 32,000 crore.
• The 10-year benchmark yield closed at around 5.13 per cent.
• At the one-day reverse repo auction, the RBI did not receive any bid.

Forex market

Sentiment: Bullish

• The rupee opened at 45.4150/4250 and remained choppy for most part of the day. It reached lows of 45.44 and highs of 45.40, before closing at 45. 44 to a dollar.
• Forwards went up following importer covering as market players felt that rupee might not appreciate further. Six-month premium closed at 0. 45 per cent.

Outlook

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The spot rupee is expected to open around 45.40/44 to a dollar.