Trading Volumes Spurt To Rs 205.28 Crore

NSE REPORT

The wholesale debt market segment of the National Stock Exchange yesterday saw increased trading as call rates receded to 8 per cent after touching 11 per cent.

The trading volumes were at Rs 205.28 crore.

Dealers said the morning session was quiet, but trading picked up towards the days close as calls returned to 8 per cent.

Treasury heads in foreign banks said that the State Bank of Indias presence in the call market was primarily responsible for the rates to climb to 11 per cent. The SBI was in the market to mop up rupees to meet the redemption of the India Development Bonds. The three-year papers saw active trading as private and foreign banks picked up the securities in a big way.

The zero coupon security maturing in 1999, the 12 per cent 1999 and the 13.70 per cent gilt maturing in 1999 were in demand, a dealer said.

The medium-term securities, on the other hand, witnessed a lot of selling pressure.

The 13.50 per cent gilt maturing in 1997 and the 13.50 per cent gilt maturing in 1998 did not see brisk trading like the three-year papers because these papers react whenever there is volatility in the call market.

The long-term papers and the public sector undertaking bonds saw considerable trading interest.