Sentiment : Cautiously optimistic
Gilts prices see-sawed with prices first falling by five paise and then rising by 15 paise.
Trading was concentrated in medium-tenor securities.
Profit booking by listed public sector banks on account of half-yearly considerations wiped out the gains.
The Reserve Bank of India governor's remarks that real interest rates should be lower led the benchmark 10-year bond to close lower at 7.15 percent as against previous close of 7.17 percent
With government announcing improved industrial growth figures, players feel investment in gilts could come down.
Call money was comfortable around the repo level of 5.75 per cent.
Outlook: Gilts prices will be rangebound. Call money rates will rule easy in the 5.65-5.75 per cent band.
Forex
Sentiment : Bullish
The rupee moved in a tight two-paise band today and wound up at 48.4525/4575 per dollar against Wednesday's close of 48.4475/4500.
It edged lower in early trade due to corporate demand for dollars.
But unwinding of long dollar positions by banks and remittances helped the rupee rebound.
Far forwards crawled up on paying interest by state-owned banks.
Outlook: The rupee is expected to hover in the 48.43-48.47 band per dollar. Forward premiums could soften a bit following receiving interest.
