Markets Report

Money market

Sentiment: Bullish

Gilts remained rangebound with long term papers moving up 4-5 paise. Not much activity was witnessed in short and medium tenor papers.

Call rates tightened to around 5.10 per cent as participants covered much more CRR fearing liquidity crunch.

The 10-year benchmark paper 9.81 per cent 2013 closed flat at 5.33 per cent.

RBI rejected 50 per cent of the bids received in repos to make liquidity comfortable and accepted around Rs 8,000 crore.

Buying came up in small quantity from banks at the end of the day.

Forex market

Market Sentiment: Bullish

Heavy dollar demand from banks to cover short positions saw the rupee close at 45.79/80 to a dollar.

 

Forwards firmed up slightly with six-month premium closing at 1.03 per cent per cent.

Outlook

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The spot rupee is expected to open today at 45.76-77 to a dollar.