NSE REPORT
Bullish sentiments prevailed at the government securities counter on the National Stock Exchange (NSE) yesterday. Deals worth Rs 782 crore were struck, taking the total traded value during the week to Rs 1,393.35 crore.
Low interest rates in the inter-bank call money market fuelled a rally in several government-dated papers. Banks took arbitraging opportunity with the over-night rates ruling in the region of 3 per cent yesterday. Yields on the gilts over 10 per cent levels assured a spread of atleast 5-6 per cent for the trader and this opportunity was not missed by banks, said a NSE broker. The 12.59 per cent government security maturing in 2004 continues to be on the buying list of many banks. Papers worth Rs 290 crore were seen changing hands at a weighted average yield to maturity (YTM) of 12.31 per cent.
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Besides, the zero-coupon bond maturing in 2000 was also in the limelight on the NSE. The paper was traded at a weighted YTM of 10.94 per cent. Deals worth Rs 105 crore were confirmed.
The 12.14 per cent government stock (2000) amounting to nearly Rs 60 crore was traded at a YTM of 11.23 per cent.
Further, easy money market conditions attracted buying interest in corporate debentures with deals worth Rs 8.91 crore were confirmed.