Markets Report

Money market

Sentiment: Neutral

• Lower fiscal deficit projection, reduced government borrowing target for the first quarter of the new fiscal and inflation rate forecast of 4-4.5 per cent improved the government securities market sentiment.
• Prices of long-term papers rose by 40-50 paise, while those of medium-term securities went up by 20-30 paise.
• The yield on the benchmark ten-year paper closed at around 5.18-19 per cent.
• Call money rates ended at 4.30-35 per cent.
• Repo subscriptions were around Rs 40,000 crore.

Forex market

Sentiment: Bullish

• The rupee opened at 45. 2850 per dollar and closed a bit lower at 45. 2950 before dipping to 45.32 amid dollar buying by the central bank.
• Exporter sales and profit booking sent the forward premiums down. The annualised premiums on six-month and one-year dollars closed at 0.81 per cent and 0.73 per cent respectively.

OUTLOOK

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The rupee is expected to open between 45. 27 and 45.33 per dollar.