Opening the day at 11.50-11.75 per cent, unchanged from its previous close, call rates held these levels in early trades. "It was okay in early trades, but call rates firmed up in the second session with quite a few state-run banks turning borrowers", a dealer with a US-based bank said. Varying reasons were offered for the perk in call rates, ranging from an outflow of nearly Rs 1,100 crore from the system on account of the closure of the fixed portion of Hughes Software Systems initial public offering, a miscalculation in cash reserve ratio (CRR) requirement computation to State Bank's dollar sales.

"It is a thin market and even moderate demand for funds can push up call rates". Fund-inflows during the current fortnight are estimated at Rs 2,800 crore. Most of the deals were struck at 15 per cent levels, but a dealer at Bank of Baroda said "I have lent funds at 20 per cent". At close, call rates were seen at 13-14 per cent. Call rates are seen ruling at 12 per cent thereabouts, dealers said with banks drawing on their 12 per cent additional collateralised lending facility.

Bond prices fell across the board. The 11.99 per cent 2009 was dealt at Rs 102.39 (Rs 102.52), 12.40 per cent 2013 at Rs 103.40 (Rs 103.53); 11.90 per cent 2007 at Rs 102.68 levels (Rs 102.84) with the 11.75 per cent 2006 at Rs 102.50 (Rs 102.62). The Life Insurance Corporation reportedly bought securities worth Rs 300 crore.

In the foreign exchange market, the coup in Pakistan left its mark on the rupee in intra-day trades as it weakened to a low of 43.52/54 before recovering to close at 43.43/44. Opening the day at 43.44/46 from its last close at 43.43/44, inter-bank short-covering saw the rupee go lower to 43.54 levels. The rupee steadied in later-day trades on the back of State Bank's dollar sales. Dealers termed corporate demand for dollars "marginal".

Compared to the relative calmness in the spot-segment, premiums reacted more pronouncedly. The one-month annualised premium quoted at 6.57 per cent (5.33 per cent). October premiums finished unchanged at 13/14 paise (11/12 paise) with April at 135/137 paise (127/128 paise) and May at 155/157 paise (147/149 paise). "There was paying interest today... but it was more on account of the higher call rates and less due to any weakness in the spot-rupee", a dealer with a European bank said.