Government bond prices continued to rally on Friday. Dealers said that inflows of Rs 3,000 crore coupled with a statement by RBI Governor Bimal Jalan on Thursday that the current economic situation justified an interest rate cut were instrumental in sustaining the bullish sentiment in the market. At close, bond prices were firmer by 10-15 paise as players continued to build positions."There was some volatility as there is profit-booking at higher levels. But overall the sentiment is bullish and volumes are large", a dealer said. Dealers said that the rise in bonds was also seen in the short-end with the 11.55 2001 ending at Rs 102.35 as compared to Rs 102.19 on Thursday. The 11.83 2014 bond closed at Rs 106.50 as compared to Rs 106.45 in the previous session. The 11.99 2009 bond ended at Rs 108.05 from the previous close of Rs 107.75.
FORECAST: Gilt prices seen higher on Saturday.
(Compiled by Anurag Joshi)
Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.