Domestic market developments:

Domestic market developments:

· Domestic benchmark equities ended higher today, extending gains for the third straight session and posting their highest close in more than five months. The gains were led by IT, realty and capital goods stocks, ahead of key quarterly results. Sensex and Nifty ended 0.85% and 0.87% higher respectively.

· Indian Government bonds ended little changed today, even as a rise in crude oil prices heightened fear of domestic inflation rising. Market players also fear a sharp rise in the June CPI print, to be released on Thursday. Trade volumes remained muted today. The yield on 10-year G-sec ended at 7.90% vs yesterday’s close of 7.89%.

· The Rupee ended weaker against the US Dollar, but recouped most of its losses intraday as banks sold Dollars. Foreign banks' buying of Dollars capped the recovery in the Rupee. Positive local equities also supported the domestic currency. The Rupee ended at 68.82 vs. yesterday’s close of 68.72.

· RBI withdrew liquidity to the tune of INR 100.7 mn (net) under LAF (including fixed and variable rate repos and reverse repos) as of July 9. It injected INR 3.03 bn and INR 23.93 bn under Marginal Standing facility and Special Refinance Facility respectively.