Markets Report

Money market

Sentiment: Bearish

• Government security prices sank as investors booked profits fearing open-market operations.
• Prices of long-term papers dived by 20 paise and those of short- and medium-term securities fell by 10-11 paise.
• The yield on the ten-year benchmark, 7.37 per cent 2014, closed at 5.15 per cent although it touched intraday lows of 5.14 per cent.
• Call money rates remained at 4.30-4.40 per cent.
• Subscriptions to one- and 14-day repo auctions stood at Rs 49,000 crore.

Forex market

Sentiment: Bullish

• The rupee touched a 44-month high of 45.07/08 per dollar in intraday trades. The currency opened at 45.16/17 and ended higher at 45.0850/09.
• Premiums on dollar forwards marginally. Annualised six-month and one-year dollar premiums closed at 0.35 per cent and 0.6 per cent, respectively.

Outlook

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The rupee is expected to open between 45.06 and 45.17 against the greenback.