Sentiment: Positive
Prices of medium tenor gilts moved up by four to eight paise on abundant funds and fresh positions by players.
The 9.81 per cent 2013 paper saw some action as a similar maturity gilt is slated to be auctioned on October 8. It opened at Rs 119.12 (yield: 7.21 per cent) and closed at Rs 119.20 (yield: 7.20 per cent).
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The benchmark 7.40 per cent 2012 paper opened at a yield of 7.13 per cent and edged lower to close at 7.125 per cent.
Call money ended narrowly lower at 5.60-5.70 per cent following lack of demand for funds on reporting Friday.
Outlook: Players will keenly observe the impact of restrictions on call money, which comes into effect today. Gilts prices are expected to be rangebound.
Forex
Sentiment: Bullish on rupee
The rupee closed unchanged at 48.3600/3625 due to moderate supply of greenbacks from exporters and negligible demand from importers.
Dollar buying by state-owned banks at 48.36 levels stanched the rupee's rise.
Premiums on the forward dollar ended steady around the four per cent level.
Players are keenly watching crude prices with the US sounding pugnacious on Iraq
Outlook: The rupee is expected to trade in the 48.35-48.36 band per dollar. Forward premiums will hover around the four per cent level.