NSE REPORT
The debt segment of the National Stock Exchange (NSE) saw subdued trading with the total traded value amounting to Rs 165.33 crore yesterday.
The overnight interest rate in the inter-bank call money market remained in the range of 4.5 to 5.25 per cent during the day. Market sources said the banks are waiting for the auction of government paper on May 28. They say that this explains the subdued interest in securities despite a low call rate.
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The 13.4 per cent government loan maturing in 1999 was traded for Rs 20 crore at 11.96 per cent and the 14 per cent government loan maturing in 2005 (second series) for Rs 25 crore at 12.66 per cent. The 13.5 per cent 1999 taxable bond on MTNL was traded at 13.2 per cent.
Among commercial papers, the Ashok Leyland commercial paper maturing on August 12, 1997, was traded for Rs 5 crore at 10.15 per cent. Corporate debentures was traded for Rs 47.04 lakh on the exchange. Market sources have adopted a wait and watch approach as they are not sure as to what the liquidity position will be following the auction. To some extent it depends on the RBI intervention in the forex markets. This could ease any tightness that follows the auction causing call rates to remain easy.