Re rebounds, gilts slip

MARKETS REPORT

Outlook: The rupee is expected to open in the range of 44.39-45 against the dollar on Monday.

Sentiment: Bearish

• The rupee opened at 44.35/38 and ended higher at 44.30. It touched an intraday low of 44.53 on month-end demand and rapid dollar buying by foreign banks.
• Forwards continued to trade at discount due to cash-dollar shortage and exporters' receivables booking. Discount on six-month and one-year dollars closed at 0.45 per cent and 0.21 per cent respectively.

Money market

Sentiment: Bearish

• Government security prices slid today, but ended the day higher on low headline inflation at 4.40 per cent.
• Prices of long-term securities vaulted by 40-50 paise and those of short-term gilts inched up by 20-25 paise.
• The yield on the ten-year benchmark paper, 7.37 per cent 2014, lost 3 basis points to close at 5.1150 per cent.
• Call money rates remained below 4.5 per cent.
• Repo subscriptions stood at Rs 21,000 crore.