Badla rates rule steady at 21% on Mumbai bourse

Our Market Bureau

Mumbai, Jan 16: Carry-forward rates on the Bombay Stock Exchange (BSE) continued to hover in the band of 21 to 27 per cent, with the average badla rates pegged at a high of 22.1 per cent annualised. The total outstanding carry-forward positions also notched up to touch a high of Rs 1,153.04 crore during the week ended January 15, against the previous week's positions of Rs 1,052.65 crore. While the purchase carry-forward positions rose to a high of Rs 1,107.9 crore in terms of value of the shares marked for carry-forward, the sale carry-forward positions were valued at Rs 220.08 crore. The sale positions have registered a sharp decline of 12 per cent over its previous week's positions of Rs 250.50 crore. It may be recalled that the week ended January 8 saw the rates stabilise at 17 per cent annualised. Interestingly, the star performers of the week viz Infosys Technologies and Telco attracted backwardation on the BSE. During the initial stages of the badla session, Infosys attracted a lower badla charge of Rs20. It may be recalled that Telco and Infosys have witnessed a steep decline in the difference between the long and short positions, this according to market sources is the main reason for the undha badlas. Telco witnessed a net long position of 13.2 lakh shares while the short position was marked at a high of 11.2 lakh shares, similarly, the short positions at the Infosys counter was pegged at 27,886 shares while the long positions were slightly higher at 37,823 shares.

Telco attracted a backwardation charge of Rs 0.08 however in the final round it closed on a positive note with the carry forward interest rates marked at a low of 14.15 per cent.

Interestingly, Dabur India and Nicholas Piramal also attracted backwardation charges at the exchange, with their total outstanding positions at a high of 1,37,900 shares and 17,400 shares respectively.

Heavy weight stocks like ACC, Bajaj Auto, HLL and SBI attracted carry forward interest rates to the tune of 21-23 per cent on an average.While news of thestrategic purchase of IPCL stocks by Reliance saw the stock price rise by over 20 per cent during the past few consecutive sessions, the counter attracted a carry forward charge of 21.30 per cent. The total outstanding positions at the counter rose to all all time high of 15,46,700 shares.

Based on the carry forward positions and the technical positions of the market, analysts expect the market to dip further before registering a sharp rally during the course of the week.

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