12.59% Gilt Garners Rs 249 Crore

NSE REPORT

Hectic trading was witnessed at the wholesale debt market of the National Stock Exchange (NSE) yesterday on account of the auction of the eight-year Rs 3,000 crore government bond.

The market clocked trades worth Rs 514.50 crore yesterday as against Rs 429.43 crore the previous trading day. Of this, corporate debentures accounted to Rs 871.82 lakh. In the government securities segment, 76 trades were reported, while in the corporate debenture segment 747 trades were reported.

The 12.59 per cent gilt maturing in 2004 was traded actively for Rs 249 crore at a weighted yield of 11.18 per cent.

According to dealers at the NSE, prices of the 12.59 per cent securities moved up by nearly 50 paise from the days opening of Rs 106.33 to Rs 106.82 during the end of the day.

There was strong demand for this paper, which accounted to nearly 50 per cent of the days trading volume and even after the trading hours the prices moved up to nearly Rs 106.90, said a dealer.

The 12.14 per cent gilt maturing in 2000 was traded for Rs 50 crore at a weighted yield of 10. 29 per cent, while the 10.50 per cent tax-free bond of KRCL maturing in 2001 was traded for Rs 25 crore.