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BUSINESS STANDARD

Sentiment : Listless

Gilt yields ended marginally lower amid few trades owing to the day-long strike.

Yields declined on bargain hunting after rising slightly on Wednesday in response to the attack in Gujarat.

The benchmark 7.40 per cent 2012 issue ended at 7.1796 percent, slightly lower than the previous 7.1839 per cent.

The yield was, however, still higher than Tuesday's 7.1753 per cent, before the news of the Akshardham massacre was out.

No deals were reported in the corporate bond market.

Call money ended flat on Wednesday but most deals were struck higher as some banks stepped up borrowings ahead of a day-long strike call on Thursday

 

Call ended at 5.70-5.75 percent, unchanged from Tuesday. But deals for two-day funds were struck between 5.75 and 5.85 percent.

Outlook: Yields on government securities could edge lower, supported by easy money conditions and the absence of retaliatory violence after the massacre of Hindu pilgrims in a temple earlier this week.

Forex

Sentiment : Dull

The rupee closed unchanged at 48.3950/4050, after rising to 48.385 on exporter dollar sales, with activity affected by the nationwide strike.

Some centres such as New Delhi and Madras received light exporter dollar remittances but volumes were thin in Mumbai, the main financial centre.

Attendance was thin in dealing rooms.

There were no deals in the forward dollar market.

Traders estimate the rupee to be fairly valued in trade-weighted terms after appreciating 1.4 per cent from a life low of 49.08 hit in mid-May.

Outlook: Volumes in the forex mart are expected to be brisk on Friday after Thursday's general strike, but the central bank may absorb surplus dollars to curb the rupee's appreciation.


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First Published: Sep 27 2002 | 12:00 AM IST

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