NSE REPORT
The wholesale debt market segment of the National Stock Exchange witnessed active trading yesterday.
This, according to dealers, was already overdue last week but the auction of 12.30 per cent security restricted what could possibly have led to a rally. 201 trades accounted for a volume of Rs 1,265.18 crore yesterday.
The market was buoyed on a possible interest-rate cut rumour. Trading activity increased considerably due to this and the restored interest in the long run saw prices move up by 15 to 20 paise. The medium-term segment, too, witnessed active trading and prices of these gilts moved up by 5 to 10 paise.
The 12.32 per cent 2011 gilt was the most traded stock in the market. It traded a volume of Rs 194 crore at a weighted yield of 11.97 per cent. The gilt traded in the price range of Rs 102.14 to Rs 102.21 before closing at Rs 102.18.
"This is being seen as an excellent buy because of the comparatively high yield of 11.97 per cent offered by it." The dealer said papers maturing in 2010 had a weighted yield of around 11.85 per cent which was 12 basis points below the 2011 paper. A difference of 6 to 7 basis points would be considered normal, a dealer said.
