Markets Report

 Sentiment: Bullish

 

 

Gilts rallied following buzz about bank, CRR and repo rate cuts.

Short-term papers witnessed a significant rally as players arbitraged between 5-year swap rates; prices moved up by 20-25 paise .

Long-term papers rose by 30-40 paise, while medium-term gilts ascended by 20-25 paise.

The benchmark 9.81 per cent 2013 ended at a yield of 5.265 per cent.

Call rates was comfortable at 4.5 per cent.

 Forex market

 Market Sentiment: Bullish

 

 

Rush by banks to fund nostro positions due on September 29 pushed the rupee down to 45.87/88 per dollar.

With the no short positions left in the market, one month forward premium closed at a discount of 0.71 per cent.

 Outlook

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 The rupee is expected to open today higher at 45.82/84 to a dollar.