Poor Trading Brings Down Volumes To Rs 111 Crore

The wholesale debt market of the National Stock Exchange was lacklustre again yesterday with trades worth a mere Rs 111.71 crore only being struck. On Wednesday the volume of trading had also been poor at Rs 173 crore

The 13.50 per cent 1998 security was traded for Rs 10 crores at 11.38 per cent.

Similar volumes were also generated in the 12.50 per cent 2004 and the 13.40 per cent 13.65 per cent government loans maturing in 1999.

Trade in the corporate debenture segment was Rs 27.92 lakhs, with deals worth Rs 14.54 lakh in the 0 per cent Reliance Petro 2001.

Quite a few transactions were also recorded in the 14 per cent ICICI bond as well as the promissiory note issued by KRCL maturing in March 1997.

Dealers pointed out that there should be an increase in the trading volumes in the gilts segment today. The reason is that the call is expected to rule in the region of 4 to 5 per cent. The call rates were at 5 to 6 per cent yesterday.

With the repo auction mopping up only Rs 1,480 crore agaist the total bid of Rs 2940 crore, dealers expect the money markets to be flush with funds.

This should not only lead to an increase in the quantum of trades, but also an appreciation in the prices of the shorter dated paper.