Railway budget lift Gilts

MARKETS REPORT

Outlook
The rupee is expected to open between 45.97 and 46.05 per dollar on Wednesday.

Sentiment: Bullish

• The rupee opened at 45.84/87 per dollar but ended weaker at 46.03 on greenback purchases by state-run banks.
• Premiums on forward dollars closed lower. Annualised premiums on six-month and one-year dollars closed at 1.15 per cent and 1.1 per cent respectively.

Money market

Sentiment: Bullish

• Government security prices went up as the government refrained from hiking freight rates in its railway budget.
• Prices of long-term securities rose by 50-60 paise, while those of medium-term gilts gained 10-15 paise.
• The yield on the ten year benchmark paper, 7.37 per cent 2014, closed at 5.70 per cent, compared with 5.75 per cent on Monday.
• Call money rates ended at 4.20-4.30 per cent.
• Repo subscriptions stood at Rs 15,000 crore, while outstandings were at Rs 62,000 crore.