Trading Shoots Up To Touch Rs 188 Crore

Trading picked up on Friday when Rs 128-crore worth of deals were concluded as rumours of a CRR cut saw banks rushing to pick up government securities.

Dealers said the rise in the prices of the securities will continue till the banks continue to exhibit an appetite for securities. "The banks are showing a lot of appetite for short-term securities," a dealer with the NSE said.

The 13.50 per cent central government security maturing in 1997 was traded at an increased price of Rs 100.52. The deal was concluded for Rs 5 crore at a yield of 13.10 per cent.

Dealers are of the view that the 13.50 per cent paper is the real indicator of demand for securities by banks. A repo deal was struck in the 364-day treasury bill maturing on July 18 for Rs 20 crore at a repo rate of 10.50 per cent.

Among the other papers traded in the debt market were the 13.62 per cent central government security, the 13.50 per cent central government security maturing in 1998 and the zero coupon bond maturing in 1999.

The zero coupon maturing in 1999 was dealt for Rs 15 crore at Rs 72.95.