Money

Sentiment: Cautious

Gilts fell by 10 paise on concerns that higher cut-offs may emerge at Wednesday's auction of the 91- and 364-day treasury bills. They were down around 20 paise initially.

The finance minister's statement in the Parliament that the international decline in interest rates has to be matched to make trade, industry and commerce competitive helped securities rebound by 10 paise.

Yield on the benchmark 7.40 per cent 2012 paper opened at 6.396 per cent (Rs 107), touched a high of 6.419 per cent (Rs 106.83) and was last dealt at 6.410 per cent (Rs 106.90).

The benchmark five-year corporate bond was dealt at 6.40/6.43 per cent.

Call money ended easier at 5.40-5.50 per cent as against Monday's 5.50-5.60 per cent as most of the banks had covered for the reporting fortnight.

Outlook: The gilts mart will be rangebound and seek a direction from the cut-off yield that will emerge at the 91- and 364-day treasury bills auctions. Call money should rule easy.

Forex

Sentiment: Bullish

The rupee ended staid at 48.1925/1950 per dollar against its previous close of 48.1950/2000 owing to good greenback supply coupled with its weakness against major global currencies.

Outlook: The rupee is expected to trade firm in the 48.18-48.22 band to a dollar. Forward premiums could edge higher.