The smooth rollover of the derivatives July series gave the domestic equity market the much needed support which helped the benchmark Sensex to rebound in the fag end of the trading session.
The 30-share Sensex of the Bombay Stock Exchange (BSE) on Thursday advanced 76.98 points or 0.49% to close at 15,776.31 points. The last 30 minutes of the trading session saw the markets gaining substantially. Meanwhile, the broader S&P CNX Nifty of the National Stock Exchange (NSE) managed to gain 31.10 points or 0.68% to end at 4,619.80.
On Thursday, July 26, which was the expiry day for futures & options, the July series of Nifty futures witnessed a rollover of nearly 70% whereas the overall marketwise rollover stood at nearly 78%. Interestingly, the combined turnover of cash and derivative markets crossed Rs 1 lakh crore on the domestic equity bourses.
Siddarth Bhamre, derivatives analyst, Angel Broking, said, “Though the rollover of July derivative series was smooth and healthy, we are not so bullish on the August futures series. We believe the implied volatility (IV) of Nifty options to increase in the coming month. However, Nifty enjoys support at 4,500 and 4,300 levels.”
Nifty August futures closed at 4,581.50 points with a discount of 38.3 points to spot Nifty indicating the build up of short position in Nifty futures.
Among the individual stock futures, HDIL, Dewan Housing, Reliance Industries, Satyam Computers saw high rollover while stocks like Air Deccan and Maharashtra Seamless were among the stock, which saw low rollover. As per BSE data, the market breadth on Thursday looked positive as 1533 (57.70) stocks advanced in the day against the declines of 1,058 (39.82%) stocks. In the Sensex pack 19 stocks gained against the declines of 11 stocks.
Among the top gainers were Ranbaxy, up 9.49% or Rs.32.35 at Rs.373.40, Cipla up 3.98% or Rs.7.40 at Rs.193.55 and Maruti Udyod was up by 3.88% or Rs.31.40 to close at Rs.841. IT sector too staged a come back as TCS, Wipro and Infosys managed to gain in the range of 2 to 3%. Cement share declined for the second consecutive day on reports that government would ease cement import norms in an attempt to rein in prices.