Re slumped to close at 45.93/$

MARKETS REPORT

Forex market

Outlook:
The spot rupee is expected to open in the range of 45.90-95 against the dollar

Sentiment: Bullish

The spot rupee opened at 45.93/95, recovered to 45. 87/88 against the dollar, but slumped to close at 45.92/93 following heavy dollar demand from oil companies and custodian banks

Premiums on six-month and one-year forward dollars closed at 0.99 per cent and 1.15 per cent, respectively

Money market

Sentiment: Bearish:

The gilts market remained bearish with anticipation of an increase in inflation figures and auction announcement

Prices of securities had a net fall of 5-10 paise

Yield on the ten-year paper closed at 7.81 per cent

Call rates ruled at around 5.5/5.6 per cent with the RBI absorbing around Rs 49.000 crore

The market is expecting an advance tax outflow of around RS 10,000 crore from the system along with RS 5000 crore towards government auction