PSU futures at discount

DERIVATIVES REPORT

Individual stock futures of state-run firms were the most active contracts in the derivative markets.

But most of these contracts continued to trade at a discount to their spot prices. Moreover, overall volumes continued to decline further.

The overall turnover on National Stock Exchange's (NSE) F&O segment declined sharply to Rs 12,716 crore on Monday compared to Friday's Rs 14,168 crore. The turnover on Nifty March 2004 futures declined substantially to Rs 2,835 crore from Rs 4,422 crore.

Nifty futures traded near to the underlying spot index and added around 50,000 shares in open interest. The volatility in call options was 24 per cent, while put options witnessed an implied volatility of 30 per cent.

Nifty March futures ended at a slight premium to the spot at 1,887.50 compared to the spot Nifty closing of 1,885.25.