Infosys futures trades at Rs 12 discount despite smooth rollover

Mumbai, Oct 28 | Updated: Oct 29 2004, 05:34am hrs
Derivatives market witnessed a smooth rollover on the last day of the October settlement cycle. Software giant Infosys Technologies, however, bucked the trend on Thursday, witnessing heavy short-covering that led the stock futures to trade at a discount of Rs 10-12 to its underlying stock.

Rollover transactions and select square-off saw the total turnover in derivatives segment rising to Rs 13,059.2 crore on Thursday compared with Rs 11,373.14 crore on Wednesday. The largest contribution, 65% of the futures and options segment, of Rs 8,505.54 crore came from stock futures.

Infosys attracted a hefty turnover of Rs 400.7 crore in the stock futures segment. The November Infosys futures closed at Rs 1,940.6 on the National Stock Exchange (NSE) compared with the underlying stock price of Rs 1,948.25. The stock of the software major opened on a steady note, with the November futures opening at Rs 1,891 against Rs 1,880 in the cash market.

Yuvraj Sehgal, derivatives dealer at Refco Sify Securities, said: A good amount of rollover has taken place in the November contract. Among individual stocks, Infosys witnessed a good amount of short-covering, which led to November futures trading at a discount of up to Rs 12 to its underlying stock price.

The November Nifty futures closed flat at Rs 1801.8 compared with the 50-share Nifty that ended at 1,800.1 points.