Re turns bullish; Gilts gain too

MARKETS REPORT

Forex market

Outlook:
The spot rupee is expected to open in a wide range of 45.20-40 to a dollar today.

Sentiment: Bullish

• The rupee turned bullish on the back of emerging political stability at the Centre and ended higher at 45.28/30 to a dollar.
• Discount on forward dollars continued with the six-month and one-year forwards closing at 1.32 per cent and 0.61 per cent.

Money market

Sentiment: Bullish

• With the spectre of a hung Parliament fading away, sentiments improved and gilt prices moved up.
• Long tenure papers witnessed a rise of around 50-60 paise, while medium term papers went up by 30-40 paise.
• The 10-year benchmark 7.37 per cent 2014 recovered to close at 5.1850 per cent after rising for some time during the day.
• Call rates were soft, while repo subscription was at Rs 10,995 crore.