Turnover in the wholesale debt market (WDM) rose 79.4 per cent to Rs 97,725 crore in July compared with Rs 54,477 crore in June.
Participants say the buoyancy is due to excess liquidity. Incidentally, the turnover has shot up after the gap of four months. Earlier, in January, the turnover had surged to an all-time high of Rs 1,11,736 crore, while in February it had retracted to Rs 1,01,313 crore.
But the aggregate turnover during the first four months of the current fiscal (April-July 2002) has been lower at Rs 2,82,782 crore compared with Rs 2,97,225 crore during the same period last year.
With the rise in aggregate volume, the average daily turnover clambered up to Rs 3,619 crore in July from Rs 2,179 crore in June.
The daily average had declined to Rs 2,130 crore, a 14-month-low, in May. The turnover in corporate bonds was up marginally from Rs 2,185 crore in June to Rs 2,210 crore in July.
This means corporate bonds remained illiquid presumably on account of higher yields compared with government securities.
The major trades continued to be restricted to government securities with top 10 papers accounting for 72.8 per cent of the total turnover.
The 7.40 per cent 2012 tops the list with an aggregate turnover of Rs 13,356 crore. The other hot gilts were the 11.50 per cent 2011A (Rs 9,490 crore), the 7.55 per cent 2010 (Rs 9,427 crore), the 9.81 per cent 2013 (Rs 8,685 crore) and the 9.85 per cent 2015 (Rs 6870.57 crore).
Meanwhile, securities traded in the WDM segment recorded handsome gains between one to three per cent in the last one month.
The 10.18 per cent 2026 paper appreciated by 3.08 per cent with its price moving up from 119.50 on June 30 to Rs 123.18 on July 31.
The 6.65 per cent 2009 issue gained 2.77 per cent at Rs 98.25, followed by the 10.25 per cent 2021, which rose 2.75 per cent at Rs 123.20 and the 10.71 per cent 2016, which edged up 2.51 per cent to Rs 125.58.
