Open interest in SBI rises

DERIVATIVES REPORT

Most stock futures continued to trade at a premium to the underlying spot prices on National Stock Exchange's (NSE's) derivative segment.

Open interest in State Bank of India (SBI), Tata Steel, GAIL India, Satyam Computer, and Mahindra & Mahindra (M&M) increased. But Reliance Industries (RIL) and Ranbaxy Laboratories witnessed a fall in open interest.

The premium in Nifty futures fell from 20 points to eight points during the day. While the call implieds fell marginally to 26 per cent, the put implieds moved up to 23 per cent.

The cost of carry shot up substantially in futures and is around 30 per cent in almost 20 stocks. This indicates a strong bullish sentiment in the market.

The open interest in SBI January 2004 futures rose to 72.40 lakh, from Tuesday's 71.85 lakh. SBI January 2004 futures (at Rs 682) ended at a premium to the spot closing of Rs 676.45.

Open interest in RIL declined by 1.97 lakh shares to 66.11 lakh, from Tuesday's 68.08 lakh. RIL January 2004 futures settled at Rs 602.50, a premium to its spot close of Rs 597.40.

Open interest in Ranbaxy Labs declined by 2.18 lakh shares to 37.42 lakh shares, from 39.60 lakh shares on Tuesday.

Ranbaxy January 2004 futures closed at Rs 1,142.50, a premium to the spot close of Rs 1,135.

Elsewhere, open interest in Nifty January 2004 futures rose sharply to 83.35 lakh on Wednesday, from 75.43 lakh on Tuesday.

Nifty January 2004 futures (close at 1,990.15) ended at a premium to the spot Nifty, which closed at 1,982.15, up 18.55 points, or 0.94 per cent, over its previous close.

But the turnover on NSE's future and options segment declined to Rs 13,225.93 crore from Rs 14,064.58 crore on Tuesday.