Search
India index futures slide on fresh short build-up
MUMBAI, Oct 10 - India's stock index futures fell more than 6 percent on Friday as panic stricken investors built up fresh short positions amid a global sell-off, analysts and traders said.
The October contract <NIFc1> closed down 6.59 percent at 3,303.30 points, after hitting a low of 3,216 points earlier. The 50-share NSE spot index <.NSEI> dropped 6.65 percent to 3,279.95 points amidst the worst global financial crisis in nearly 80 years.
"The pain in the market will continue though we expect the aggression of the sell-off will reduce," said Yogesh Radke, analyst at Edelweiss Securities.
Counters like ICICI Bank <ICBKnsc1> and India Infoline <IIFLnsc1> saw harsh sell-offs, Radke said.
The premium to the spot market widened marginally to 23.25 points on Friday from the previous session's 22.7 points. Analysts attributed the premium to the sharp selling in the cash markets, which were down nearly 10 percent at one point.
"The markets are very shaky, investors are hedging by getting out of stocks and putting the money into index futures," said Sailav Kaji, head of derivatives at PINC Research.
He added that many short positions had been unwound during last month's expiry helping widen the premium.
For the coming week analysts expect support levels at 3,100 to 3,200 points, while 3,800 is seen as a good resistance.
TOP FIVE CONTRACTS BASED ON OPEN INTEREST ---------------------------------------------------------------- ------- COMPANY NAME RICs
OPEN INT. ---------------------------------------------------------------- ------- Tulip IT Services <TULPnsc1> 0.00%
Reliance Petroleum Ltd <RPETnsc1> 0.00%
IFCI Ltd <IFCInsc1> 0.04%
Hindalco Industries Ltd <HALCnsc1> 0.02%
NTPC Ltd <NTPCnsc1> 0.00% ---------------------------------------------------------------- -------
TOP %AGE INCREASE IN OPEN INTEREST ---------------------------------------------------------------- ---- COMPANY NAME RICs
CHG. % ---------------------------------------------------------------- ---- Jindal Saw <JINDnsc1> 74.06%
India Infoline Limited <IIFLnsc1> 35.29%
AXIS Bank <AXBKnsc1> 32.84%
Kotak Mahindra Bank Ltd <KTKMnsc1> 29.73%
Everest Kanto Cylinderltd <EKCLnsc1> 20.79% ---------------------------------------------------------------- ----
TOP %AGE DECREASE IN OPEN INTEREST ---------------------------------------------------------------- ---- COMPANY NAME RICs
CHG. % ---------------------------------------------------------------- ---- Monnet Ispat Ltd <MNETnsc1> 25.64%
Bata India Ltd <BATAnsc1> 21.50%
JSW Steel Ltd <JSTLnsc1> 21.15%
Rolta India Ltd <ROLTnsc1> 19.88%
Aban Offshore Ltd <ABANnsc1> 19.27% ---------------------------------------------------------------- ----
Recommend this article
- Average (0 votes)
- Sign in to recommend this article »
Related Articles: Business
- Bank of China reaffirms Royal Bank of Scotland tieAP - 54 minutes ago
- Sri Lanka says to cut reserve requirementReuters - 59 minutes ago
- TOPWRAP 7-Govts bail out banks, UK wants new Bretton WoodsReuters - 1 hour 1 minute ago
- Egypt's Ezz sees long steel growth, flat stallingReuters - 1 hour 3 minutes ago
- WRAPUP 1-MUFG seeks M.Stanley rejig; U.S. said to back dealReuters - 1 hour 5 minutes ago