Dull Trading Likely

GILTS & BONDS Market

The wholesale debt segment of the National Stock Exchange (NSE) is expected to witness lacklustre trading this week.

While securities prices may recover, dealers said with call rates ruling at around 15-20 per cent, banks would prefer to invest funds in the money market.

Prices of securities are expected to remain fairly stable during the earlier part of the week. However, if liquidity tightens later in the week, the prices could see a fall again. Last week, the debt segment saw a total traded volume of Rs 1,296.36 crore which was a sharp drop as against the previous weeks volume of Rs 2,934.38 crore. The average trading volume was Rs 324.09 crore (Rs 489.06 crore). The highest volume of Rs 484.99 crore was clocked on Wednesday, and a low of Rs 164.44 crore on Saturday. Government securities were traded for Rs 747.72 crore contributing 57.68 per cent of the total traded value. Treasury bills were traded for Rs 519 crore last week.

 

On Saturday, the 10.85 per cent government loan maturing in 2001 saw three trades for Rs 30 crore at a weighted yield of 11.72 per cent.

The 365-day treasury bill maturing on April 24 witnessed five trades for Rs 35 crore at a weighted yield of 11.9 per cent.