Sentiment : Positive
Prices of gilts opened higher but profit booking brought them down by 5-10 paise.
Later in the session, participants covered (bought) at lower levels.
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The benchmark 7.40 per cent 2012 paper moved in a narrow five paise range.
Trading was restricted to medium-tenor papers.
Call money closed lower at 5.65-5.75 per cent against Tuesday's 5.70-5.80 per cent on redemption of the 13.82 per cent 2002 paper.
Outlook: Gilts may rise by five to ten paise following reports of government's lower borrowing programme for the second half. Call money could tighten a bit as the RBI on Wednesday accepted all the bids at the repo auction fully.
Forex
Sentiment : Dull
The rupee today closed firmer at 48.40/41 per dollar against Tuesday's 48.41/42 amid narrow trades.
Healthy dollar supplies from petrochemical and cement firms helped up the rupee.
However, state-owned banks stemmed any further rise by buying greenbacks.
Near forwards fell by around seven basis points and far forwards by around two basis points on the back of reports that the Centre would borrow less than expected from the debt market.
Outlook: The rupee is expected to trade in the 48.39-48.42 band per dollar. Premiums on the forward dollar could wind down a trace.