Re plunges, gilts tumble

Sentiment: Bearish

• The rupee lost about 17 paise to close at 44.20/21 per dollar, compared with its Friday close of 44.03/04.
• Discounts on forward dollars narrowed. The annualised discount on six-month dollar ended at 0.33 per cent compared with 0.69 per cent on Friday.

Money market

Sentiment: Bearish

• Government security prices tumbled across the board on political uncertainty spread after exit polls predicting a hung parliament.
• Prices of short- and medium-term securities declined by 24-80 paise and those of long-term gilts lost over a rupee.
• The yield on the benchmark 10-year gilt shot up to 5.11 per cent from 5.08 per cent on Saturday.
• Call money rates eased to 4.00-4.25 per cent from 4.25-4.50 previously on the back of ample liquidity in the banking system.