Firm Trend Ahead

GILTS & BONDS Market

The liquidity in the system is all set to buoy gilt prices in the week ahead. The total turnover for the week at the wholesale debt market at the National Stock Exchange (NSE) ended June 21 is placed higher at Rs 1940.54 crore against Rs 1567.21 crore for the week before.

Gilts were dealt for an amount of Rs 1590.83 crore, amounting to 82 per cent of the total turnover at this segment of the NSE. The average turnover for the week-ended June 21 is Rs 323.42 crore against Rs 261.2 crore for the week-ended June 14.

Trading on Saturday was placed at Rs 255.56 crore. The deals were struck mainly in the 12.59 per cent government loan maturing in 2004 drawing deals for Rs 60 crore at a yield of 12.34 per cent, the 12.14 per cent government loan maturing in 2000 dealt for Rs 20 crore at 11.59 per cent yield.

The 13.4 per cent and 12 per cent gilts maturing in 1999 saw active trading . The turnover at the exchange varied from a high of Rs 476.6 crore on Wednesday and a low of Rs 117.25 crore on Monday. The corporate debentures segment has been witness to debentures of Reliance Capital, Reliance Petro and India Cements being actively traded.

The call rates are expected to open around six-6.5 per cent levels and average at four per cent for the week.