Volumes Peak To Rs 1831.27 Crore

NSE REPORT

Hectic buying activity was witnessed at the wholesale debt market of the National Stock Market (NSE) with a record turnover of Rs 1,831.27 crore yesterday. According to treasury managers of commercial banks, the high volume was on account of the newly auctioned eight-year Rs 3,000-crore government loan.

There was huge demand for the 11.19 per cent government loan maturing in 2005 which accounted to Rs 924 crore of the total traded volume on the bourse, said a dealer. Most of the banks that did not receive allotment for the paper were aggressively buying in the secondary market which was traded at a premium of 45 pasie, at a weighted yield of 11.10 per cent against the auction yield of 11.19 per cent, added dealers.

The 12.59 per cent 2004 saw trad-es worth Rs 460 crore at a weighted yield of 11.09 per cent. Reportedly, the Punjab National Bank sold government securities worth Rs 600 crore, while the LIC and BoB purchased government securities worth Rs 900 crore and Rs 50 crore respectively from the market.

The NSE volume had last touched a high of Rs 1,553.58 crore on July 17 on account of the auction of the six-year 11.83 per cent paper maturing in 2003.