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MUMBAI, Aug. 29

SATYAM Computer recorded combined volumes of 5.5 crore shares on the Bombay Stock Exchange and the National Stock Exchange on Thursday. Brokers said that the rise in volumes was mainly on account of the expiry of August stock futures and options.

On the NSE, Satyam Computer recorded volumes of 3.84 crore shares compared with 2.13 crore shares traded on Wednesday. On the BSE, volumes were 1.67 crore shares (85.50 lakh shares). The same trading pattern was witnessed on the last Thursday of July when the derivatives contract expired.

The stock today ended 4.34 per cent higher at Rs 237 on the BSE and at Rs 237.70 on the NSE.

The stock futures on Satyam Computer last traded on the NSE at Rs 235.85 (for August contract), a discount to the closing spot price. Similarly, September futures last traded at Rs 232.60, also at a discount to the spot price.

However, some brokers said that these prices were not comparable as derivatives market closed at 3 p.m.and spot market at 3.30 p.m.

Brokers said that if futures traded at a discount to the spot price, traders would arbitrage the price differential by taking short positions in the spot market hoping to buy back the stock at lower prices later. But if the price in the futures market rose, the price in cash market also rises. This would see traders covering their short positions, resulting in rise in the volumes.

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