It has happened again!! The market in the last hour has covered all losses and the Sensex has advanced 123 points. At one time it was running 40 points negative. Maybe it has reacted to the global positive mood.
SENSEX 17831 (+123.43)
In international capital markets, DJIA, Nasdaq, FTSE, DAX and the STOXX 50 rose. The reason is that there is confidence that the Greece debt deal will be signed in the last minute. The investor mood in the US is upbeat as manufacturing growth figures are positive. In the debt market, the extra yield investors demand to hold Spanish 10-year bonds instead of German bunds rose nine basis points. The yield on the bund fell one basis point to 1.97 percent. The 30-year U.S. Treasury bond yield fell one basis point to 3.14 percent before the government sells $16 billion of February 2042 debt, the third of three auctions this week totaling $72 billion.
The FRA OIS spread shows that in February 2012 the spread has gone up indicating some liquidity strain.
We constructed the yield curve for yesterday and compared it with those of the last two weeks. We can see that the yields this week has softened as compared to last week of January 2012. But this week, the rates are somewhat higher than those of last week.
The rupee has depreciated to Rs.49.2895 to the US $. There continues to be increased demand for dollars in the domestic market.
The table below gives the top gainers in NSE during the day.