MUMBAI, July 11: The annualised carryforward rates were fixed lower for the week ended July 10 and the average rates hovered in the range of 8 per cent to 10 per cent. The week which saw the Bombay Stock Exchange touch the psychological barrier of 3,400 and the National Stock Exchange rise to 980.10 levels has however not sent the carryforward rates zooming up.The fact that the rally on the BSE was instigated by purchases in bluechips which were in the no delivery mode has kept the badla rates subdued. Most of the trades were done on delivery basis so there was not much carryforward positions in the market.
"The low carryforward rates is a good sign of tezi in settlement in the market," Shailesh Merchant Brokers' Chetan Shah said.
Volumes on the BSE continued to be subdued, reflecting perhaps the soft sentiment prevailing in the market. Badla rates were fixed lower at 8.5 per cent in the previous settlement also.
Dealers said that the situation reflected an easy liquidity in the market withlittle outstanding positions to absorb. Bears have not made a major come back since the ban on short sale was lifted. Analysts expect the market to move up Monday.
The week July 6 to July 10 saw the BSE move up from 3,178.31 to 3,401.74, with markets witnessing major FII and institutional buying which was mainly on delivery basis leading to low carryforward rates. "This is also a sign that the markets will pick up in the next settlement," a BSE broker said.
The badla rates prevailing on July 11 were below market expectations. Market sources attributed this to the fact that pivotals like ACC, SBI, ITC and L&T among others which saw the maximum activity during the normal trading session were in the no-delivery mode.
This has only led to high liquidity in the market with low badla rates."With these badla rates the markets will move up as this will also give way to huge speculative activity perking up the positive sentiment further," said Bombay Stock Exchange (BSE) broker Ajai Doshi.
The annualised rateattracted by HLL was 3.56 per cent; Infosys 8.3 per cent; MTNL 7.6 per cent; Novartis 7.6 per cent; NIIT 8.3 per cent; Pentafour Software 5.6 per cent; Satyam 8.29 per cent; Videocon International 8.06 per cent; BHEL 8.3 per cent; Castrol 8.35 per cent; Digital Equipment 7.8 per cent; German Remedies 8.5 per cent and ABB 9 per cent.
The scrips that attracted undha badla were HDFC Bank, Lakme, Balrampur Chinni, Ceat Ltd and Tata Tea.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
