Re ends flat at 44.265/$

MARKETS REPORT

Forex Market

Outlook:
The spot rupee is expected to rule in the range of 44.24-29 to a dollar.

Sentiment:Bullish

Rebound in the equity market improved sentiment, but did not result in major inflows. The spot rupee remained flat by opening at 44.27/28 and closed around 44.26/2650 to a dollar.

The annualised premium for six-month forward premium closed at 3.23 per cent.

Money Market

Sentiment: Bearish

Amid the panic of monetary measures, buyers settled down for bottomfishing towards the end of the trading session.

Prices of government securities moved up by 20-25 paise across maturities.

The yield on 10- year paper closed at 7.94 per cent. n Liquidity was abundant with the call rates hovering around 6/6.05 per cent.

The Reserve Bank of India (RBI) absorbed around Rs 30,000 crore from the market through reverse repo.

Market expects inflation figure to rule lower this week.