Active Trading Ahead

GILTS & BONDS Market

Activity in the wholesale debt market segment of the National Stock Exchange (NSE) is expected to increase with the 12.59 per cent 2004 and the 13.05 per cent 2007 slated to be actively traded. A downward movement in the yields is expected in the medium to long-dated securities.

The inter-bank call rates ranged from a high of 10 per cent to a low of 4.25 per cent during the last week. The rates should rule easy during this week and should spur activity. The cut in the Bank Rate fuelled expectations of a lower interest rate regime. The statement by the governor of RBI that interest rates will rule easy for six months fuelled activity in the securities market as banks flocked to buy securities.

 

In fact, during last week, the market witnessed volumes of Rs 2,245.63 crore against Rs 1,940.54 crore the previous week with a highest volume of Rs 456.06 crore on Monday and a low of Rs 246.0 crore on Wednesday. Average traded volumes was Rs 374.27 crore against Rs 323.42 crore.

Government securities were traded actively for Rs 1,902.28 crore contributing 84.71 per cent of total traded value. In contrast, treasury bills were traded for only Rs 135.28 crore last week.