Participants Diverge On Possible Trend

Players have a mixed view on the trend in government securities this week as there are host of factors that are playing on sentiment currently.

Trading interest will depend on the cut-off set by the Reserve Bank of India (RBI) in the paper to be auctioned for open market operation (OMO). Profit selling is expected to continue for some time after the OMO but towards the middle of the week, fresh buying is likely to be seen.

There were no major outflows last week, but the trend is subdued following the announcement of the open market operation and former RBI governor Bimal Jalan