Sentiment : Cautious
Prices of gilts moved in a narrow three-four paise band today.
With the second quarter ending in four days, players didn't want to take fresh positions as any depreciation in prices will have to be provided for.
Rising crude oil prices and violence in Jammu & Kashmir continued to be a cause for concern.
The benchmark 7.40 per cent 2012 paper was down by three-four paise from the previous close.
Trading was concentrated in medium tenor gilts; short and illiquid papers also saw some stray deals.
Call money looked up during the day but closed unchanged at Monday's levels of 5.70-5.75 per cent.
There were 10 bids for Rs 13,175 crore at the daily repo auction which were accepted partially for Rs 11,858 crore.
Outlook: Gilts could open lower following the terrorist attacks in Gujarat. Players are expected to stay on the sidelines. Call money should hover easy in the 5.70-5.80 per cent band.
Forex
Sentiment : Neutral
The rupee ended flat at 48.3925/4025 per dollar.
Dollar buying by foreign banks and month-end demand from oil companies resulted in the rupee slipping to an intra-day low of 48.4150.
However, remittances from exporters and dollar selling by state-owned banks helped the rupee rebound to sub-48.40 levels.
Premiums on the forward dollar were rangebound as players awaited the outcome of the US Federal Reserve's Federal Open Market Committee meeting, and concerns about rising crude oil prices.
Outlook: The rupee is likely to appreciate slightly as players will try to take advantage of swap differentials by going short on dollars and buying it back towards the week-end. Forward premiums will depend on the outcome of the Fed's FOMC meeting.
