Open interest on the rise

DERIVATIVES REPORT

Open interest across most individual stock futures rose on Wednesday following hectic activity in the derivatives markets. The total turnover on National Stock Exchange's futures and options segment rose to Rs 15,321.77 crore, up from Tuesday's Rs 13,945.95 crore.

But major chunk of the volumes was on account of arbitrage between the cash and future segment, as funds and traders took advantage of price differentials. FIIs, too, indulged in cash futures arbitrage.

Open interest in February futures of Tata Motors, Tisco, State Bank of India and Tata Power saw a significant rise. But open interest declined in individual stock futures of ACC and Satyam.

However, premiums were not very significant which indicates a cautious mood of market players.