Money

Sentiment : Cautious

Call rates continued their steady run between 5.65 and 5.85 per cent in a banking system that's awash with funds.

There were 18 bids worth Rs 18,660 crore at the repo auction, which were partially accepted for Rs 13,062 crore.

Gilts remained rangebound on concerns about the Rs 3,000 crore auction. Players felt that the auction is a signal that the central bank is not happy with the low yields on gilts.

Liquidity checked any fall in gilts. Corporate bonds remained quiet tracking the trend in gilts.

Outlook: Government securities may rise by 15-25 paise at the medium and long end of the tenor scale, but there can be profit-booking at higher levels. Call rates will be in a band of 5.60 per cent to 5.90 per cent.

Forex

Sentiment : Subdued

The rupee dipped by seven paise to 48.71/72 per dollar mainly due to a fertiliser co-operative picking up around $40 million.

A big public sector bank was also buying dollars for its corporate client.

The greenback's gain against other major global currencies also contributed to the rupee's fall.

Dollar inflows were thin and were mainly through non-resident Indians' remittances, routed through private and foreign banks.

No intervention by the Reserve Bank of India (RBI) was seen.

Premiums rose marginally tracking the $/rupee trend.

Outlook: The rupee is likely to remain in a range of 48.66 to 48.72 per dollar amid thin trading. Premiums will track gilts and remain around the current levels.