Fis Share Of Nse Debt Trade Falls

The share of financial institutions in trades on the wholesale debt market (WDM) segment of National Stock Exchange has gone down considerably from 3.33 per cent in April to 0.76 per cent in May.

On the other hand, the share of foreign banks has increased from 12.66 per cent to 17.09 per cent.

The share of Indian banks, however, remained unchanged at 34.26 per cent. Share of primary dealers also fell, albeit marginally, from 22.33 per cent to 22.08 per cent, while those of corporates and mutual funds increased from 1.78 per cent to 1.95 per cent.

In the case of other trading members too, there has been a reduction in share from 25.45 per cent to 24.42 per cent.

 

A dealer with a private sector bank said, "FIs are not big traders in the market and generally more cautious compared with other players such as banks and primary dealers. Since the beginning of the financial year, government paper yields have been falling. Moreover there was scam in between as well. This has made the FIs stay on the sidelines during May."

WDM is dominated by government securities. In May, gilts contributed to 90.4 per cent of the total turnover in the mart.

As a matter of fact, the share of government securities dipped from 94.22 per cent in April to 90.38 per cent in May.

The share of treasury bills increased from 2.10 per cent to 4.79 per cent, while the share of institutional bonds fell from 0.72 per cent to 0.53 per cent.

The contribution of other securities in total trading went up from 2.96 per cent to 4.29 per cent.

The turnover in the government security market also fell in May at Rs 53,246 crore, compared with Rs 77,334 crore in April. The average daily turnover dropped to Rs 2,130 crore in May from Rs 2,130 crore in April.