Trades Total Rs 165.33cr On Moderate Activity

NSE REPORT

Moderate buying interest in the short- to medium-term gilts was seen at National Stock Exchange yesterday due to the inter-bank over night rates coming down to around 4.5 per cent from the opening levels of 7 per cent. Trades amounting to Rs 165.33 crore were struck in the government securities counter on the NEAT system.

NSE brokers said foreign banks were seen buying the medium-term maturity government securities. Banks resort to arbitraging between gilts securities and inter-bank call money rates assured a spread of 2 to 4 per cent is assured, the broker said. With call money rates coming down to 4.5 per cent towards noon time from the opening levels of around 7 per cent, and the yields of the medium-term maturity government securities in the range of 12.5 per cent to 13.60 per cent, several of the aggressive foreign banks came to buy the gilts, said the broker.

 

That apart, corporate debentures amounting to Rs 50.80 crore changed hands yesterday. The yields on the debentures and bonds were traded at big differences in the region of 16.68 per cent to 26.56 per cent. Brokers said Wide range in the yields is due to an air of uncertainty prevailing in the debt market on the eve of budget, hence several traders are seen liquidating their positions.