Money

Sentiment : Cautious

Gilts prices fell by about five paise today even as the market discounted the terrorist attack in Gujarat.

Ample liquidity and calm participants meant prices stayed at lower levels.

The benchmark 10 year 2012 paper opened at 101.51 (yield: 7.1780 per cent) and closed at Rs 101.48 (yield: 7.1820 per cent).

Foreign banks bought treasury bills to meet their SLR requirements.

There was demand for funds at 5.75-5.80 per cent from banks in the call market on account of tomorrow's strike.

Call money closed at 5.70-5.75 per cent, unchanged from Tuesday's levels.

Outlook: There will not be much activity in both the gilts and money markets as thin attendance is expected in banks on account of the nationwide strike.

Forex

Sentiment : Subdued

The rupee ended at 48.3950/4050 per dollar, barely changed from Tuesday's levels, amid few trades.

There was no adverse impact of the terrorist attacks on the Akshardham temple complex in Gandhinagar.

While selling came in at 48.42 levels, there was demand for the greenback at 48.40.

Premiums on the forward dollar ended up, spurred by sanguinity over a US Fed rate cut.

The Fed was uncertain about the US economy on growing war risks, which, players said, could mean a rate cut is possible.

Outlook: Thin volumes are presaged as attendance in banks will be affected on account of a nationwide strike to protest against the Gujarat massacre. The rupee is expected to hover in the 48.40-48.42 band to a dollar. Forward premiums will track spot dollar.