MUMBAI, Sept 25 (Reuters) -

STOCKS:

The benchmark BSE Sensex was up 0.4% at 85,175, while

the NSE index was up 0.3% at 26,018 on bets of another

rate cut from the U.S. Federal Reserve.

RUPEE:

The Indian rupee rose 0.09% versus the U.S. dollar to

83.5925, tracking most of its Asian peers which were boosted by

a rally in the Chinese yuan while dollar sales from state-run

banks also helped the local currency.

GOVERNMENT BONDS:

The benchmark 10-year bond was quoted at 102.45

rupees, with the yield down 2 bps at 6.7469%, on bets of yet

another large rate cut from the U.S. Federal Reserve as well

some reduction in gross borrowings by India's central

government.

OVERNIGHT INDEX SWAPS:

The one-year overnight index swap rate was

down 1 basis point at 6.37%, while the five-year swap rate

dropped 2 bps to 5.99%.

CALL MONEY:

India's overnight call money rate was at 5.80%, and

the overnight TREPS rate was at 6.30%.

(Reporting by Bhakti Tambe)