Re drops to 43.54/$, gilts rally

MARKETS REPORT

Forex market

Outlook
The spot rupee is expected to open in the 43.51/54 range to a dollar on Wednesday.

Sentiment: Volatile

The spot rupee opened at 43.41/42 but demand from importers, oil companies and dollar buying by public sector banks led to a closing of 43.53/54 to a dollar

Premium on forward dollars fell due to dollar selling by exporters with six month and one year dollars closing at 0.86 per cent and 0.91 per cent, respectively.

Money market

Sentiment: Bullish

Prices of G-sec rose across board in the wake of sufficient liquidity and no negative triggers

Prices in the long-term papers went up by 40-45 paise while the short- and medium-term prices moved up by 25/30 paise

The 10-year paper 7.38 per cent 2015 closed at 6.97 per cent as against yesterday's close of 7.02 per cent

Call rates fell as low as 1/1.5 per cent amidst reverse repo bids of Rs 44,000 crore

Deals to the tune of Rs 900 crore as against only Rs 19 crore dealt on the NSE WDM segment