Dim debut for new individual stock futures

Mumbai, April 20 | Updated: Apr 21 2005, 06:04am hrs
The 34 stocks that were newly included in the individual stock futures list of the National Stock Exchange (NSE) made a lacklustre debut on the bourse on Wednesday, following lack of interest by market players ahead of the April 2005 contract expiry next week.

Of the 34 securities, 33 stocks were traded on Wednesday. AV Birla group company Indian Rayon found no buyers or sellers in the April 2005 futures contract. Nine stocks witnessed low volumes, with the number of contracts traded ranging between one to 10. Only one contract was traded at the Siemens and Sterlite Industries counters. Cadila Healthcares (2), Kochi Refineries (4), LIC Housing Finance (4), UTI Bank (6), Cummins (6), Nicholas Piramal (7) and Chennai Petroleum (10) also saw low volumes in the individual stock futures.

Vijay Bhambwani, CEO of BSPLindia.com, said: A subdued market and the ensuing April 2005 contract expiry were the reasons for lack of interest on the newly included securities. Its a good step that NSE has enlarged the list of individual stock futures, for it will increase the turnover on the exchange. However, the exclusion of some large companies has come as a surprise.

There has been a mixed trend on the newly included securities, with 19 stocks ending at a premium to the spot prices in the range of 0.01% to 2.22%.

The stock futures of Sterlite Industries enjoyed the highest premium of 2.2%, ending at Rs 630 per share. Meanwhile, 15 stock futures ended at a discount to the spot prices in the range of 0.39% to 4.68%.

NSE will undertake the second phase of expanding the list on May 12, 2005 and will add another 23 stocks while in the third phase of expansion, which will take place on May 27, it will add another 13 stocks in the individual stock futures list taking the total number of stocks to 123 on which stock futures will be available for trading on NSE.