13.8% Gilt Draws Rs 25 Crore

NSE REPORT

Modest buying in corporate debentures saw trades worth Rs 221 lakh in the debt segment of the National Stock Exchange (NSE) yesterday.

Corporate debt instruments is witnessing hectic trading activity due to easy money market conditions and softening of interest rates at the short end, said a Mumbai-based NSE broker.

Money market instruments like the certificate of deposits (CD) and commercial papers (CP) attracted buying inquiries from banks as the over-night interest rates crashed to one per cent from the opening levels of nine per cent. CDs of IndusInd bank maturing in June 12, 1997 and June 30 worth Rs 5 crore each were traded at interest rates at 9.25 and 9.35 respectively, said NSE brokers.

Trades worth Rs 146.65 crore were seen in the government securities counter of the NSE. The 13.8 per cent government security maturing in 2002 was traded at a weighted yield to maturity (YTM) of 12.65 per cent and deals amounting to Rs 25 crore were confirmed by sources.

That apart, a repo deal at nine per cent was seen on the NSE screen for 14 days.

According to brokers, the deal amounting to Rs 10 crore was concluded in the 13.5 per cent dated government security maturing in 1998.