Spot rupee ends at 44.10/$

MARKETS REPORT

 

The spot rupee opened lower at 44.06/08 as against a close of 44.10/11 on Monday following portfolio inflows.

However, dollar buying by public sector banks as part of RBI intervention saw the rupee close at 44.10 to a dollar.

 Money market  Sentiment: Bearish

Inflation and auction of government securities weighed down on the market sentiment.

Prices of government securities fell by 20-40 paise across maturities.

The yield on 10-year benchmark closed at 7.75 per cent.

Call rates during the day ruled around 7.80/7.85 per cent.

The Reserve Bank of India (RBI) infused funds of Rs 6,000 crore, which is almost half of the amount infused on Monday.

The market expects inflation to rule higher this week owing to the base effect.