Sentiment : Positive
Prices of medium-tenor gilts edged up around five paise.
The market was up by about 10 paise in the morning.
Profit selling and fear of auction saw prices come off by about five paise at close.
The benchmark 7.40 per cent 2012 paper opened Rs 101.79 (yield : 7.14 %), touched a high of Rs 101.90 (7.12 %) and closed at Rs 101.83 (7.13 %).
Call was comfortable around the repo level on the penultimate day of reporting Friday.
Liquidity was evenly spread as 22 players put in bids at the one-day repo auction.
Outlook for tomorrow: Trading in gilts will be cautious following the announcement of the twin auction. Call rates will be comfortable.
Inflows tomorrow : Rs 750 crore
Outflows : nil
Forex
Sentiment : Bullish
The rupee closed with little change at 48.3600/3625 per dollar compared with its previous close of 4.3550/3600. This was despite bunched dollar supply on account of yesterdays holiday as importers' interest was negligible.
Buying support from state-run banks at 48.36 level prevented the rupee from breaching 48.35.
Trading in forex spot remained listless owing to lack of market-moving factors.
Forward premiums, tracking the firmness in the spot market, dipped a tad.
Outlook for tomorrow: The rupee is expected to be traded in the 48.35-48.37 band. Forwards may ease to 4 per cent.
