Rupee gains, Gilts fall

MARKETS REPORT

Forex market

Outlook
The rupee may open between 46.18 and 46.24 against the greenback on Wednesday.

Sentiment: Bullish

• The rupee opened at 46.28/29 per dollar and ended higher at 46.21/23 on the back of dollar sales by corporates.
  
  
• Premiums on forward dollars ended unchanged.

Money market

Sentiment: Bearish

• Apprehensions over the state development loan sales, to be held on July 28, drove down government security prices.
  
• There RBI will put up an on-tap sale of 10-year state development loans to raise Rs 8,600 crore at 6.35 per cent.
  
• Prices of long-term securities declined by 50-60 paise, while those of medium- and short-term gilts slid 25-30 paise.
  
• The yield on the ten-year benchmark paper, 7.37 per cent 2014, closed higher at 5.95 per cent.
  
• Subscriptions at the repo window stood at Rs 15,000 crore.