Markets Report

Money Market

Sentiment: Bearish

• Government security prices took a beating today on inflation concerns.
• The headline inflation was at 5.94 per cent, higher than the market's expectations of 5.71 per cent.
• Prices of long-term papers declined by 10-15 paise and those of medium-term papers fell by 5-7 paise.
• The yield on the ten-year benchmark paper closed at 5.2431 per cent, higher than Thursday's close of 5.24 per cent.
• Call rates declined to 3.75-4.25 per cent from 4.25-4.50 per cent on Thursday.

Forex market

Sentiment: Bullish

• Talk of Warren Buffett's $1 billion investment in the ONGC issue lifted the rupee to 45.2925/2975 per dollar from Thursday's 45.3250.
• Premiums on forward dollars firmed up. Annualised premiums on six-month and one-year dollars closed at 0.30 per cent and 0.43 per cent, respectively.

Outlook The rupee is likely to open between 45.28 and 45.31 against the dollar.