Markets Report

 Sentiment: Moderate

 

 

Gilt prices fell by Rs 2 in the long term and Re 1 in the medium term with the RBI announcing no cuts in the monetary and credit policy on Monday.

Later, prices recovered with the RBI governor stressing on continuation of the soft interest rate bias.

Call money rates hovered in the range of 4-4.5 per cent.

Liquidity is gradually coming back with the RBI accepting Rs 9610 crore in the one-day repo and Rs 535 crore in the 14-day repo.

 The ten-year benchmark 7.27 per cent 2103 closed at 5.10 per cent after shooting up to 5.25 per cent immediately after the policy announcments.

 Forex market

 Market Sentiment: Lacklustre

 

 

The spot rupee rermained flat during the day, with the rupee opening and closing at the same level of 45.31/3150 to a dollar.

Premia on short term dollars shot up sharply, with six months premium moving up to 0.85 per cent before closing at 0.55 per cent.

 Outlook

 The spot rupee is expected to open at 45.30/32 to a dollar on Tuesday.