Money Market

Sentiment: Weak

Yields on gilts ended higher owing to profit sales and fears over an attack on Iraq.

In absolute terms, gilt prices came off by a rupee.

Corporate bond yields, too, hardened by 10-20 basis points.

The benchmark 5-year Hindalco paper was quoted at 6.95/7.00 per cent against the previous level of 6.90 per cent.

Call money ended easy at 5.40-5.50 per cent on the back of easy liquidity.

Forex market

Market Sentiment: Bullish

The rupee ended firm at 47.7050/7150 owing to easing crude oil prices coupled with good dollar inflows. The currency opened at 47.76/77. It had closed at 47.76/77 the previous day. State-run banks were seen selling dollars.

 

Outlook: The rupee may rule firm in the 47.68-47.73 range on the back of technical factors and good dollar inflows.