Money

Sentiment : Bullish

Ample liquidity and traders taking position ahead of the scheduled auction in October first week helped medium-tenor gilts rise by around 10 paise.

The benchmark 10-year 7.40 per cent paper opened at Rs 101.50 (yield: 7.18 per cent) and closed at Rs 101.62 (yield: 7.16 per cent).

Volumes in gilts were good at around Rs 3,000 crore.

Overnights ended higher at 5.70-5.80 per cent, compared with Thursday's 5.70-5.75 per cent.

There was demand for four-day money in the call market.

Outlook: Gilts are expected to open higher tomorrow. Players will not sell lower as tomorrow is the last trading day of the quarter and trading books will be valued at closing prices. Call money will be comfortable around the repo rate.

Forex

Sentiment : Bullish on rupee

The rupee ended at an eight-month high of 48.3775/3825 per dollar against Thursday's close of 48.3950/4050.

Strong dollar inflows on account of a clutch of foreign funds picking up 16 per cent stake in ICICI Bank buoyed the rupee.

Demand for the greenback was subdued.

The only worrisome factor was crude oil prices, which hovered around $29 per barrel.

Premiums on the forward dollar, which opened higher, drifted down on receiving support from exporters.

Outlook: The rupee is expected to stay firm in the 48.36-48.38 per dollar slot on the back of supplies from foreign funds and exporters. Premiums on the forward dollar will hold at current levels.