Badla skyrockets to 51 per cent on BSE

MUMBAI, MAR 20: Carryforward rates badla on the Bombay Stock Exchange BSE zoomed to a high of a little over 51 before stabilising in the band of 40.2 to 41.7 annualised. According to brokers, stray trades were established even at a high of 70 . The steep jump in the badla interest rates from a low of 26 per cent registered during the session conducted on March 13 to a high of 51 was attributed to the inadequate supply of funds in the system. According to brokers, the financial year ending always witnesses a sharp spurt in the carryforward rates despite the positions being marked at normal levels.

The carryforward positions on the BSE were marked at a low of Rs 1,363.72 crore. It may be recalled that the net outstanding positions on the exchange on Friday evening were pegged at Rs 1,377 crore. quot;The financial year-end considerations act as a major constraint in the availability of vyaj badla funds,quot; said brokers.

Among the index stocks Hindustan Lever, Glaxo, ABB, E Merck India, SmithKlinePharma and Burroughs are currently traded in the no-delivery category and, hence, are not considered for the computation of badla charges. Nestle India attracted a book-closure badla charge of Rs 42.75 weighted average based on the hawala price of Rs 515. The stock will enter the no-delivery phase beginning from the new financial year on BSE on March 22.

Interestingly, stocks like BPL, EIH, HPCL, IPCL, Madras Refineries and Siemens attracted badla charges to the tune of 60 . However, the rates stabilised above the market average of 42 .

ACC and SBI continued to attract badla charges lower than the market average. These two counters have, over the last few days, registered considerable amount of delivery-based purchases, hence the fall in the badla charges.