Re ends flat at 43.08/$

MARKETS REPORT

Forex Market

Outlook:
The rupee is expected to open around 43 against the dollar on Thursday

Sentiment:Bearish

The spot rupee breached Rs 43 mark and traded at Rs 42.92/93 but later retreated to close at Rs 43.06/08.

The annualised premiums for the six-month and one-year forwards closed at 5 per cent and 4.50 per cent, respectively.

Money Market

Sentiment: Bullish

Liquidity remained comfortable on Wednesday.

Some banks picked up bonds to meet statutory liquidity requirements (SLR).

Yield on the 10-year government paper was flat at 8.16 per cent. It is likely to remain in the 8.15-8.20 range

The cut-off yield for auction for 7.55 per cent 2010 bonds (Rs 6,000 cr) was 8.24 per cent.

Call rates eased today. Most of trades happened in 7.5-10 per cent range while the Reserve Bank of India infused over Rs 8,000 crore on net basis.