Sentiment : Cautious
* Call rates stayed in the 6.65-6.85 per cent band owing to comfortable liquidity.
* The Reserve Bank of India (RBI) accepted repo bids worth Rs 14,052 crore out of total bids worth Rs 17,565 crore.
More From This Section
* Government security prices dipped by 30-40 paise due to profit booking.
* Rising inflation spawned talk of the low interest rate regime coming to an end.
* RBI governor Bimal Jalan's statement that the bank rate cut is not related to the drought condition hit sentiment.
* Participants were also concerned about the Rs 8,000 crore auction to be conducted in the first week of August.
Outlook: Government security prices are likely to remain stable with a downward bias as there can be some profit booking. Call rates are likely to rule easy due to abundant liquidity.
Forex
Sentiment : negative
* Rupee fell by eight paise to 48.75/76 per dollar due to big demand from corporates for the greenback.
* A power company was seen buying dollars, through public sector banks.
* The RBI was not present in the market.
* The supply of greenbacks was thin and was mainly from exporters.
* Forward premiums rose marginally as gilt yields went up and the rupee drooped.
Outlook: The rupee is likely to remain in a band of 48.65 to 48.75 per dollar. Premiums may rise on concerns about a possible auction in the first week of August.