Carryforward rates decline

The badla rates opened at 21 per cent and touched a high of about 23 per cent. But thereafter it dipped before stabilising at 5-6 per cent annualised levels. The dip in the carryforward rates was attributed to the compulsory no-delivery (CND) in select heavy weight stocks which would be traded on the compulsory demat mode from February 15. The 17 stocks which would be traded in the CND mode are namely : ACC, Mahindra & Mahindra, Madras Refinery, Tata Tea, Asian Paints, Castrol, HPCL, Cochin Refinery, Ranbaxy, ABB, Gujarat Ambuja, Hero Honda, Dr Reddy’s Labs, Bajaj Auto, TVS Suzuki, Thermax and NIIT.

The CND would be applicable for settlement beginning on February 8 for a period of two trading cycles. The exchange has decided to conduct the CND without a book closure or record date in the said scrips during the no-delivery period. "In view of the adjustments made, the exchange considered February 6 carry forward session as book closure vyaj badla for these 17 scrips, which will be for a period of 14 days," explained a BSE broker, "there will be no carry forward in these scrips on February 13."These 17 stocks according to market players attracted a carry forward interest rate of 30per cent during the initial phase of the session. The rates further dipped to a low of 20 per cent and during the last phase made a high of 50 per cent. The interest rate has been fixed for the two weeks or trading cycles where the stocks will be traded in the CND mode.

"We should witness a major rally on Monday, " said chief dealer of Woodstock Securities, Arun Kejriwal.