Markets Report

 Market Sentiment: Weak

 

 

Call firmed up to 5.15 per cent during the day but closed at 4.75-85 per cent on demand from banks to meet their reserve requirements.

Gilts fell by 20 paise in the medium term and 40 paise in the long term on selling pressure triggered by a liquidity crunch.

The 10-year benchmark 7.27 per cent 2013 gilt closed flat at 5.10 per cent.

The higher cut-off yield of 5.52 per cent against market yield of 5.54 per cent announced by the Reserve Bank of India (RBI) on the OMO sale of 2018 paper dampened sentiment.

The RBI accepted around Rs 4000 crore at the one-day repo.

 Forex market

 Market Sentiment: Bullish

 

 

Demand for dollars from oil companies and short covering by banks saw the rupee end at a low of 45.3940.

Forward came off owing to exporter selling with the six-month dollar closing at 0.22 per cent

 Outlook:

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 The spot rupee is expected to open around 45.3540-37 to a dollar