Don’t miss the latest developments in business and finance.

Sentiment: Good

Image
BUSINESS STANDARD
Last Updated : Feb 26 2013 | 1:02 AM IST

* Call money rates remain soft, hover around the repo rate of 5.75 per cent.

* Repo auction sees 18 bids worth Rs 16,445 crore which were accepted partially for Rs 9,867 crore.

* Short and medium gilts dart up by 40-50 paise driven by liquidity.

More From This Section

* The climb, however, was checked by the rise in headline inflation.

* There was profit-booking in gilts during the fag end of the day.

* Corporate bond yields dipped by 2-5 basis points tangoing the fall in gilt yields.

Outlook: Call rates will continue to hover around the repo rate because of the comfortable liquidity position. Gilt prices should remain stable amid the open market operation auction.

Sentimen t: Subdued

* The rupee remained in a tight band of 48.64 to 48.67 per dollar today.

* There were dollar inflows through non-resident Indians (NRIs). Exporters, too, contributed. But importer demand was dull.

* The terrorist attack in Kashmir had a negative impact on the rupee.

* State-owned banks were seen buying dollars on behalf of the Reserve Bank of India.

* Premiums firmed up marginally at the longer end as interest rates in the US drooped.

* The dip in gilts checked the rise in premiums.

Outlook: The rupee is likely to open stronger tomorrow, but will come down on dollar buying by state-owned banks. Forward premiums are likely to remain steady around current levels.


Also Read

First Published: Aug 06 2002 | 12:00 AM IST

Next Story