A total of 1,314 stocks hit the lower circuit out of 2,597 stocks traded.

According to market participants the filters came into action as large number of traders had leveraged position in most of the T group stocks. Since they had to pay money, large scale selling occurred with no buyers. As per market sources most of these traders have not yet been able to square of their position and further fall in share prices may be seen in the next few days.

Rupee slips further - securities decline
Mumbai: The rupee depreciated further against the dollar on Thursday closing at 43.92/9250, lower than Wednesday's 43.88.

Forwards market: The 12-month closed at 0.78 per cent (0.75 per cent) and the 6-month closed at 0.87 per cent (0.78 per cent).

G-Secs: The 10.25-16 year-2021 paper ended at Rs126.13 (7.40 per cent YTM), lower than Wednesday's Rs126.43 (7.37 per cent YTM). The 7.37-9 year-2014 paper closed at Rs102.50. (6.98 per cent YTM) against Wednesday's close of Rs102.68 (6.94 per cent YTM). The 7.38 per cent 10-year benchmark 2015 paper was dealt at Rs102.68 (7 per cent YTM).

Call rates: The inter bank rate was at 5.10-5.15 per cent (5.05-5.10 per cent).

Reverse repo: In the one-day auction the RBI received and accepted 22 bids amounting to Rs11,115 crore.

CBLO market: 251 trades for Rs12,110.75 crore in the rate range of 4.85-5.25 per cent.

RBI: Six States to raise development loans of Rs839 crore
Mumbai: Six State governments have announced the sale of 10-year State Development Loans for an aggregate amount of Rs839.42 crore through a yield-based auction using multiple price auction method, RBI said in a press release.

The States are: Assam - Rs208.83 crore; Jharkhand - Rs117.81 crore; Kerala - Rs145.81 crore; Maharashtra - Rs290 crore; Manipur - Rs36.95 crore and Tripura - Rs40 crore.

The auction will be held on September 27, and the successful bidders will have to make payment on September 28.

RBI asks banks to finalise vendors for cheque truncation by October.
Mumbai: The Reserve Bank of India has asked banks to finalise vendors for their Cheque Truncation Systems by October. The system allows transferring the electronic image instead of a physical movement of the cheques.

RBI is likely to begin live testing of CTS in Delhi by January or February 2006 and roll out the pilot project by March 2006, said Kaza Sudhakar, General Manager and in-charge of the Products and Developments Division of the Payments Department, RBI. Sudhakar was speaking at the Banknet seminar on information technology business benefits in banks.

The process of cheque truncation reduces the clearing time and also cost involved in physically sending the cheques.

Sudhakar said that eventually only two major fund transfer products will remain, the National Electronic Fund Transfer (NEFT) for low value or retail transfers and Real Time Gross Settlement for high value transfers. Other payment types such as like SEFT (Special Electronic Fund Transfer) would be migrated to NEFT by December, he added.

Sudhakar also said that banks must have at least one fund transfer product linked to Real Time Gross Settlement on their Web sites as electronic fund transfer products work out cheaper than legacy or traditional products, banks must charge lesser for these services, he added.

22 September 2005

BSE shifts 850 stocks to T group
Mumbai: The BSE has said that it has shifted 850 scrips in the trade-to-trade (T) segment by way of a surveillance action imposed on them. This number is in addition to the scrips that are already under the `Z' group, which are also settled on trade-to-trade basis.

T segment implies that all transactions in the scrip are delivery based and curtails excessive speculation. The exchange's trading system also displays a pop-up caution message at the time of order entry in these scrips.

BSE, in a statement, has said that as part of a surveillance review, all scrips under T segment (including `Z' group) are attracting 100 per cent margin from August 8. Additionally all the scrips under this segment attract a reduced circuit filter of 5 per cent from September 21.

The exchange has also suspended 1,369 scrips (since 2000-01) till date on account of non-compliance with various clauses of listing agreement.

It has also issued show-cause notice to 95 companies for non-compliance with the provisions of listing agreement.

42 per cent of FII inflows into markets through participatory notes
Mumbai: SEBI sources indicate that the share of participatory notes account for almost 42 per cent of the US$8.3bn invested by FIIs in the Indian securities market so far this year. This is up from 24 per cent earlier this year.

While FIIs were net investors to the tune of US$8.5bn during the last calendar year, market sources indicate that the total investments in the current year may well touch US$12bn this year.

The total number of registered FIIs now stands at 782, which is up from 632 on December 31, 2004. According to market sources, the new FIIs registered this year are largely Japanese and Scandinavian investors.

Rupee volatile - bonds bearish
Mumbai: The rupee ended a shade lower against the dollar on Wednesday closing at 43.88, marginally down from Tuesday's 43.87/8750.

Forwards market: The 12-month premium closed at 0.75 per cent (0.69) and the 6-month premium at 0.78 per cent (0.71).

G-Secs: The 10.25 16 year-2021 paper ended at Rs126.43 (7.37 per cent YTM), lower from the earlier close of Rs126.54 (7.36 per cent YTM). The 7.37 percent 9 year-2014 paper closed at Rs102.68 (6.94 per cent YTM), against Tuesday's close of Rs102.74 (6.93 per cent YTM). The 7.38 per cent 10-year benchmark 2015 paper was unchanged from the previous level of Rs102.68 (7 per cent YTM).

Call rates: The inter bank rates were between 5.05 per cent and 5.10 per cent (5.10-5.05 per cent).

Reverse repo: In the one-day auction, RBI received and accepted 32 bids amounting to Rs14,205 crore.

CBLO market: 200 trades for Rs8,278.25 crore in the rate range of 4.75-5.05 per cent.

RBI: 182-day T bill `undersubscribed'
Mumbai: The auction of the 91-day treasury bill was fully subscribed, while the 182-day treasury bills was undersubscribed on Wednesday, according to an RBI release. The notified amount for the 91-day treasury bill was Rs4,000 crore, of which, Rs3,500 crore was under the Market Stabilisation Scheme (MSS).

The RBI received 37 competitive bids, amounting to Rs5635.55 crore. Of these, it accepted 24 bids. The cut-off price was Rs98.72 (5.20 per cent YTM).

The partial allotment percentage amounted to 53.22 per cent from eight bids. The weighted average price was Rs98.73. The RBI also received one non-competitive bid amounting to Rs269.32 crore.

In case of the 182-day treasury bill, the notified amount was Rs1,500 crore, of which, Rs1,000 crore was under MSS. The RBI received 29 competitive bids amounting to Rs923 crore. Of these, RBI accepted 17 competitive bids, amounting to Rs528 crore. The cut-off price was Rs97.38 (5.39 per cent YTM). The weighted average price was Rs97.39.

The devolvement on RBI was nil on both bills.

21 September 2005

Bull run at the markets: All T-group stocks in placed in price band from today
Mumbai: In a bid to check the unabated bull run in the markets, stock exchanges have tightened the price band mechanism to curb abnormal movements in share prices. All trade-to-trade (T-group) and penny stocks have been placed under five per cent price band from Wednesday.

In the T-group, trades in shares will be allowed only on payment and delivery basis. With this change, more than 1,000 out of some 2,500 stocks traded daily on the BSE will come under the five per cent price band.

On the NSE, more than 125 stocks out of an average of 750 stocks traded will figure in this price band. The NSE said that till now it has shifted 239 stocks to the T-group in the last few months.

In addition, the exchanges have also brought 39 securities that had no price band so far, under the 20 per cent price band from Wednesday.

The exchanges are also moving more securities to the T-group in order to avoid excessive speculation. They are also suspending trading in securities not complying with listing agreements.

From Friday, the BSE has shifted 53 securities while the NSE has shifted eight more stocks. In order to avoid excessive speculation in companies not complying with the listing norms, the BSE has suspended trading in 39 stocks from Thursday, as they have not paid the listing fee for the current fiscal.

The NSE in a statement said that till now it has suspended 124 companies for non-compliance of the listing agreement. It has also suspended trading in three companies and issued show cause notice to 13 companies for non-compliance with the provisions of the listing agreement.

RBI allows FII purchases in Mahindra Gesco, Tata Tea
Mumbai: The Reserve Bank of India has notified that foreign institutional investors (FIIs) can now purchase equity shares and convertible debentures of Mahindra Gesco and Tata Tea Ltd under the portfolio investment scheme (PIS).

The equity shares and convertible debentures can be purchased through the primary markets and stock exchanges up to 30 per cent of the paid-up capital of Mahindra Gesco and 35 per cent of Tata Tea Ltd.

Both these companies have earlier passed resolutions to this effect at their board of directors' and general body meetings, said a release from the central bank.

Rupee moves up - securities flat
Mumbai: The rupee strengthened against the dollar on Tuesday closing the day at 43.87/8750, up from Monday's 43.90/91.
Forwards market: The 6-month premium closed at 0.71 per cent (0.50) and the 12-month at 0.69 per cent (0.40).

G-Secs: The 10.25 16 year-2021 paper closed at Rs126.54 (7.37 per cent YTM) against Monday's level of Rs126.53 (7.36 per cent). The 7.37 per cent 9 year-2014 paper ended at Rs102.74 (6.93 per cent YTM), higher than the earlier level of Rs102.71 (6.93 per cent YTM). The 7.38-10 year-2015 paper was dealt at Rs102.68 (7 per cent YTM) against the previous level of Rs102.7 (6.99 per cent).

Call rates: The inter bank rates opened at 5.10 per cent and closed at 5-5.05 per cent (5.10-5 per cent).

Reverse repo: In the one-day auction, RBI received and accepted 34 bids amounting to Rs17,810 crore.

CBLO market: 209 trades, for Rs8,278.25 crore in the rate range of 4.97-5.15 per cent, were realised.

20 September 2005

BSE issues investor advisory as bull run continues unabated
Mumbai: In an uncommon move the Bombay Stock Exchange (BSE) has issued an advisory for small investors asking them to be watchful and take due care before investing in the market.

The move by the BSE comes as a follow up to a sharp rise in share prices with no corrections in evidence. BSE has taken note of the fact that several penny stocks have appreciated by as much as 6,000-7,000 per cent over the last few months.

The exchange has advised investors that their trading / investment strategies should be in line with their risk bearing capacity as all investments carry risk, the degree of which varies according to the investment strategy adopted. The exchange has told investors to be cautious about stocks, which show a sudden spurt in price or trading activity, especially low price stocks while pointing out that there are no guaranteed returns on investment in stock markets.

Singapore Stock Exchange to re-launch Nifty futures
Kolkata: The Singapore Stock Exchange (SGX) will re-launch trading in the CNX Nifty futures from October 10.

According to a SGX note, the Nifty futures will have a smaller contract size on its platform - SGX Quest "to help facilitate active trading and encourage greater market participation".

The new contract will provide margin savings in the form of inter-commodity spreads for SGX equity contracts between the CNX Nifty Index and MSCI Taiwan Index, Nikkei 225 Index and MSCI Singapore futures contracts, the note said.

Thomas Tey, senior vice-president and head of International Products, at SGX said, "The sentiment towards India's growth potential has been positive and our market participants are enthusiastic about the SCX Nifty contract. This is an opportune time given the recent signing of the Comprehensive Economic Co-operation Agreement by India and Singapore".

Rupee weak - securities dull
Mumbai: The rupee ended at 43.90/91, slighter lower than Friday's close of 43.87/88.

Forwards market: The 12-month premium ended at 0.40 per cent (0.65 per cent) and the 6-month premium closed at 0.50 per cent (0.65 per cent).

G-Secs: The 10.25-16 year-2021 paper closed at Rs126.53 (7.36 per cent) against the earlier level of Rs126.44 (7.38 per cent YTM). The 7.37-9 year-2014 paper closed at Rs102.71 (6.93 per cent), up from the previous level of Rs102.66 (6.95 per cent). The 7.38-10 year-2015 paper was dealt at Rs102.7 (6.99 per cent), against the earlier level of Rs102.40 (7.04 per cent YTM).

Call rates: The inter bank rates opened at 5.10 per cent and closed at 5 per cent (4.95-5.05 per cent).

Reverse repo: In the one-day auction, the RBI received and accepted 35 bids amounting to Rs18,945 crore.

CBLO: 202 trades for Rs8,278.05 crore in the rate range of 4.95-5.25 per cent, were realised.