Derivatives expiry takes toll

STOCK REPORT

Expiry of the December derivatives contracts on Thursday snapped the four-session rally of the Sensex and Nifty. The day was market by volatility. Investors booked profits in pharmaceutical and capital goods shares, and bought shares of fast moving consumer goods companies.

The Bombay Stock Exchange Sensex ended at 13846.34, down 13.35 points or 0.1 per cent, after touching a low of 13819.77 and high of 13960.39 intraday.

The National Stock Exchange Nifty ended at 3970.55, down 3.70 points or 0.1 per cent. It moved between a low of 3961.95 and high of 3997.35 intraday. The combined turnover of both exchanges was Rs 12,100 crore, up 25 per cent from Wednesday.

"Even though volume on Thursday was more than on Tuesday and Wednesday, it was low compared to that on the last day of expiry," a dealer said.

Volume this week has been low due to limited foreign investor participation because of the Christmas holidays.

On Thursday, CNX Midcap Index ended marginally down while S&P CNX 500 Index ended flat.

The Sensex and Nifty moved in a thin range as investors rolled over outstanding positions in the December futures and options contract to the January series.

"We had a good (December F&O) expiry and the marketwide rollover is likely to be more than 75 per cent," a derivatives dealer said.

Bharat Petroleum Corp, which rose over 8 per cent in the last half hour of trade due to short covering, ended up 3.1 per cent at Rs 334.90.

The company on Tuesday said it would pay 60 per cent interim dividend for 2006-07. There was also light short covering in UTI Bank, a dealer said, adding that 200,000 shares of the bank exchanged hands in the last three minutes of trade.