Badla moves up

MUMBAI, Dec 13: Carry forward rates (Badla) on the Bombay Stock Exchange slightly improved to hover in a wider band of 8 per cent to 15 per cent annualised for a net outstanding position of 1.66 crore shares valued at Rs 270.39 crore. Since the introduction of the modified carry forward system (MCFS) as cleared by Sebi, the turnover of the carry forward session has been registering a gradual increase. Over the previous week, the figure has shown an appreciation of over 17 per cent from Rs 230 levels.

Of the 98 stocks offered for the carry forward session, about 12 stocks attracted backwardation. Among the heavyweights, SAIL attracted a backwardation of Rs 2 for a net outstanding position of 5.09 lakh shares. According to market participants, the end of the session again saw a badla operator offering 10,000 shares at an interest rate of Rs 1.50 (weighted average) reflecting the lack of liquidity at the counter.

Other index-based stocks, which attracted backwardation and had been hammered down severely during the week ended December 11, were Telco (Rs 2.18 weighted average), Ranbaxy Labs (Rs 0.50), Pond’s (Rs 6.51), ACC (Rs 21.41) and BHEL (Rs 3.47).

"The sentiment continues to be lacklustre, with operators refusing to make any fresh long positions," commented a BSE broker. "The next week should see the index falling considerably during the first two sessions, with operators already shedding their positions at the kerb markets," he explained.

Among the frontrunners, HDFC attracted a carry forward interest rate of 15.61 per cent.