Trading Volumes Dip To Rs 119.87 Crore

Trading in the wholesale debt market was moderate yesterday with deals worth Rs 119.87 crore being struck.

Monday had seen trading shoot up to Rs 188 crore.

There was a rise in the prices of government securities. The 13.50 per cent central government security maturing in 1998 saw a 6 paise jump to Rs 101.50.

A Rs 15-crore deal, to be concluded the same day, was struck in the security at 13.42 per cent. The paper saw another deal for Rs 9 crore at Rs 101.54.

Dealers said rumours of a CRR cut were gaining ground with banks rushing to invest in securties. "All indications are that the RBI will cut the CRR by 1 per centage point which will bring down the interest rates," an official with a foreign bank said.

The price of the 13.50 per cent gilt maturing in 1997 also registered a slight increase.

The gilt was traded for Rs 15 crore at Rs 100.58. A deal was also concluded in the same security for Rs 25 crore at a yield of 13.10 per cent. The deal is to be settled the same day.

The zero coupon security maturing in 2000 was traded for Rs 20 crore at 14.17 per cent. The deal is to be settled after four days. The 14 per cent gilt maturing in 2005 also saw a Rs 1-crore deal.