Money

Sentiment : cautious

Surplus cash in the system keeps call rates in 5.65-5.80 per cent range.

The repo auction saw just six bids worth Rs 4,075 crore today, which were accepted partially for Rs 2,038 crore.

Banks bid for lower amounts at the repo auction as they were building up position ahead of reporting Friday.

Gilt prices opened higher, but slipped on the back of profit-booking.

The announcement of the Rs 4,000 crore open market operation (OMO) auction affected gilts. Players say it shows the Reserve Bank of India's discomfort with falling yields.

Outlook: Call rates are likely to remain around 5.55-5.75 per cent levels owing to continuing good liquidity. Gilt prices may slip on concerns about Friday's Rs 4,000 crore OMO auction.

Forex

Sentiment : Positive

The rupee remained in a thin band of 48.6550 to 48.6650 per dollar amid subdued activity.

Tapered dollar inflows through exporters restricted the session.

The inflows were mainly countered by dollar buying by state-owned banks, a move seen as indirect intervention by the Reserve Bank of India (RBI).

Premiums increased a bit in tandem with the rise in government paper yields.

The expectations of a rate cut by the US Federal Reserve also helped lift premiums.

Outlook: The rupee is likely to remain in a tight range of 48.64 to 48.67 per dollar on the back of RBI intervention through state-owned banks. Premiums may increase a bit due to concerns about the OMO auction to be conducted on Friday.