Financial Daily from THE HINDU group of publications
Tuesday, May 13, 2003
Columns - On the hedge
Infosys contracts tumble
K.S. Badri Narayanan
TRADING remained lacklustre at the derivative segment on the NSE on Monday as the turnover dropped to about Rs 1850.45 crore as against Friday's turnover of about Rs 1910 crore.
Index futures: The May futures were the most active with 8541 contracts changing hands. The contract closed the day at 932.95 as against Friday's close of 934.65. The June contracts closed at 933.10 and the July futures at 933.90. All the three months' contracts ended the day at a discount to the Nifty spot close of 936. Open interest in May futures slipped by about one per cent to 17,496 contracts. The unmatched buy/sell order book of the NSE for May futures suggests more people were willing to go short as the buy/sell ratio was at 0.52.
Stock futures: The near-month futures were the most active. Among them, Infosys, Satyam Computer, SBI, Digital GlobalSoft, Reliance and Wipro were actively traded. Rising rupee seemed to be acting as dampener for IT stocks. Adding to that, Infosys suffered further on the company's announcement that it had settled out of court a sexual harassment suit filed by an ex-employee against the company and its ex-director and head of worldwide sales, Mr Phaneesh Murthy, for $3 million. Following this announcement Infosys appeared to have suffered at both cash and derivative markets.
The May contract tumbled by 4.87 per cent to Rs 2776.60 with open interest improving over 23 per cent to 38,700 contracts. The buy/sell ratio of 0.62 from `unmatched NSE order book' also suggests more people were willing to go short.
The Infosys June futures closed at Rs 2790.20 (Rs 2911) while open interest shot up by over 51 per cent to 790 contracts.
The underlying equity lost 4.92 per cent to close at Rs 2,782.30.
Index options: The May 940 and the May 930 strikes among calls and the May 940 and the May 920 strikes among puts were the most active counters.
The out-of-the money (OTM) 940 calls closed the day at Rs 7.95 (Rs 9.20) while open interest improved about 12 per cent to 1,904 contracts. The 920 puts (also OTM) closed marginally higher at Rs 6.70 (Rs 6.55) and open interest jumped to 875 contracts.
Equity options: The May 170 strike on Satyam, the May 2900 strike on Infosys, the May 300 strike on SBI and the May 300 strike on HPCL were most active among calls.
The OTM Satyam 170 calls closed the day lower at Rs 5.20 (Rs 6.70). Open interest improved by over five per cent to 1330 contracts.
Among puts, the May 170, 160 and the 150 strikes on Satyam, the May 2900 and the 2800 strikes on Infosys and the May 280 strike on SBI were actively traded.
The SBI 280 strike closed the day lower at Rs 2 (Rs 3.80) with open interest improving to 650 contracts.
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