Listless Trade Seen

GILTS & BONDS Market

The WDM segment is expected to witness another dull trading session this week unless the RBI announces any changes in its policy stance, felt a large section of market players. The market players believe the call rate has settled down to 9 - 9.50 per cent level and thus the prices of the government securities will not see any volatility this week.

The week being a reporting Friday, traders are expected to square-up their position by the week end. Besides, with Wednesday being a holiday on account of Mahashivratri, there will be drop in the overall volume.

 

"It will be a flat market, with few buyers and net sellers," said a broker. "Many traders have already adopted a wait and watch strategy by reducing their investment in commercial papers as well as trading in securities," added the broker. The last week also saw dull trading with not much of price movement. A major portion of trading volume at the WDM was contributed by UTI on account of huge redemption the mutual fund had to came for US 64 scheme and despite this there was a drop in volume.

Last week witnessed volumes of Rs 1459.01 crore against trade volume of Rs 2266.88 crore in the previous week, with the highest volume of Rs 416.60 crore on Thursday and a low of Rs 27.15 crore on Saturday.

The average traded volume during the week was Rs 243.17 crore as against Rs 377.81 crore the previous week. Government securities were actively traded for Rs 902.93 crores contributing to 61.89 per cent of the total traded value. T-bills contributed to a volume of Rs 524.17 crore and the commercial paper and certificate of deposit combine accounted to volume of Rs 31.91 crore.

On Saturday there were only eight trades showing a volume of Rs 27 crore of which the T-bill were amounting to Rs 10 crore. The 17.50 per cent bonds of Rajasthan State Electricity Bond were traded for Rs 2 crore at the weighted yield of 14.62 per cent at the price of Rs 109.65.