Gilt Prices Take A Tumble

NSE REPORT

Government security prices crashed yesterday and the market moods fluctuated wildly.

The trading volumes were placed at Rs 402.5 crore and the week has seen deals worth Rs 858.56 crore so far.

The calls moved in a narrow range. Overnight money opened in the range of 4.5 per cent and was in a narrow band. Calls later closed in the region of 4.25 per cent for the day. The security prices witnessed a drop with the prices of the new seven-year paper being the most affected gilt. The price of this security dropped by almost Re 1 to close at 100.25 levels for the day. There was an initial selling pressure in the morning but prices recovered marginally and there was a mild recovery in the latter half said a money market dealer with a private sector bank.

The other gilts affected included the 13.05 per cent loan with 10-year maturity traded for Rs 35 crore at 12.63 per cent yield, the 12.50 per cent government loan maturing in 2004 for Rs 85 crore at a yield of 12.48 per cent.

The Corporate debentures segment saw activity of Rs 79.92 of which the zero per cent debentures of Reliance petroleum changed hands for Rs 54.38 lakhs at 19.74 per cent yield.