SBI, Tata Steel at premiums

DERIVATIVES REPORT

Individual stock futures showed mixed trends on Thursday as select futures were traded at a discount.

While State Bank of India (SBI), Tata Steel, Maruti Udyog and Satyam Computer attracted premiums, Tata Motors, Tata Power, Reliance Industries and Infosys Technologies were traded at a discount to spot prices.

The turnover on the National Stock Exchange's future and options segment declined to Rs 13,040.80 crore from Rs 14,365.51 crore on Wednesday.

Nifty futures continued to trade at backwardation to the underlying spot index. There was hardly any change in the open interest.

Nifty futures remained the most active contract, registering a turnover of Rs 3,975.54 crore. Nifty March futures ended at a discount to the spot at 1,837 as against the spot Nifty closing of 1,843.85.

In options, the implied volatility in call options fell to 19 per cent, while the volatility in put options went up to 30 per cent.

Open interest increased in stocks whose public offering are set to hit the markets.

Oil and Natural Gas Corporation added 2.7 lakh shares or 12 per cent, IPCL added five lakh shares and GAIL India added eight lakh shares in open interest.

But GAIL was traded at a fair discount to the spot. GAIL March futures ended at Rs 203 compared with the spot closing of Rs 207.25, while GAIL April futures were traded at a lower discount to spot at Rs 201.60.

IPCL was traded at a substantial discount to the spot. The IPCL March futures ended at Rs 186.50 against the spot closing of Rs 194.75.

Meanwhile, other frontline stocks hardly witnessed any action in terms of change in open positions. In fact, they shed marginal open interest.