Turnover in the wholesale debt market (WDM) segment of the National Stock Exchange (NSE) rose 189.5 per cent in the first six months of the current financial. The turnover stood at Rs 4,36,208 crore in the first half of this fiscal against Rs 150,673 crore in the corresponding period of the previous financial year.
In fact, turnover during the first half was higher than that in entire fiscal 2000-01 (Rs 4,28,582 crore).
The average daily turnover during the first six months was higher at Rs 3,007 crore (up 185.29 per cent) than Rs 1,054 crore in the corresponding period of last fiscal. Average daily turnover during 2000-01 was Rs 1,483 crore.
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Analysts pointed out that the ample liquidity condition, mainly owing to a high deposit growth and a lower credit offtake, helped the trading in the WDM segment to increase substantially.
The higher trading volume has been reflected in falling yields as well. The yield on the 10-year government paper stood at around 9.10 per cent at the end of September against 10.50 per cent in the beginning of the fiscal. Yield of the 364-day treasury bill declined to seven per cent in September from 8.80 per cent in April, while the yield on the five-year non-convertible debenture fell to 8.95 per cent (9.50 per cent).
Trading volume took a sharp jump in May to Rs 83,982 crore from Rs 46,285 crore in April. The volume remained above Rs 80,000 crore in June and July, and came down gradually to Rs 63,199 crore in September.
According to analysts, the volume is likely to soar once again following the cut in cash reserve ratio and the bank rate announced in the Reserve Bank of India's credit policy.