The badla session on the BSE saw three of the UTI scheme units attract backwardation on the bourse, indicative of huge selling in the absence of delivery. UTI Mastergain attracted a backwardation of Rs 0.10 weighted average, Master Plus (Rs 0.03) and Master Share (Rs 0.01).

Carryforward rates recorded a sharp fall to stabilise at a low of 12.17 per cent weighted average over their previous week's high of 16.43 per cent. The exchange conducted the carryforward for a total badla position valued at Rs 764 crore, which also includes the jobbing positions. Interestingly, Andhra Valley was the only counter which attracted a higher carryforward charge of 16.39 per cent (weighted average).

According to market participants, the substantial jump in the carryforward rates could be on account of the continuous backwardation attracted bythis counter during the past three consecutive sessions. The most interesting feature of the day's session was the ITC counter. The stock attracted a phenomenal backwardation of Rs 21.39 weighted average for a net badla position of 5 lakh shares. It should be recalled that the stock had witnessed a jump in its net short positions to the tune of 2.80 lakh shares.

The other stocks which attracted backwardation charges were Hindalco (Rs 9.37 weighted average), HLL (Rs 9.87), Smithkline Beecham (Rs 1.39), Telco (Rs 0.59), Ponds (Rs 0.45 ), Brittannia (Rs 0.83) and ABB (Rs 4.54).

The FII favourite pharma representative, Novartis, which traded at a new high of Rs 690 on the local bourses, attracted a backwardation of Rs 1.53.Sterlite traded on account of book-closure vyaj badla. The counter attracted a backwardation charge of Rs 3.86, reflecting an adjustment of Rs 8.50, the dividend announced by the company. The stock will be traded in the no-delivery category of the BSE from October 12.

Most of thepivotals attracted marginally lower carryforward charges.

According to market sources, the fall in the long positions led to a sharp decline in the fund requirements at these counters.