Financial Daily from THE HINDU group of publications
Sunday, Sep 22, 2002
Markets - Derivatives Markets
PSU petro stocks remain active
ADVERSELY impacted by the growing opposition within the Government to the disinvestment programme and Standard & Poor's downgrade of India's rupee denominated debt, the stock market indices finished the week on a weak note. The BSE Sensitive Index ended September 20th session at 3,024 points, a fall of about 2.4 per cent in relation to the preceding week's closing value.
The Sensex shed the gains registered in early September drifted down towards 3,000 points last week. Jittery investors began to sell once dissent about disinvestment from an important segment of the governing coalition surfaced. Standard & Poor's downgrade merely added to negative factors that have impacted the market recently.
The drift downwards in the spot market left a marked impact on the derivatives market. With September contracts close to termination, a few of the most actively traded call option contracts slipped out-of-the-money.
Options: Near-month contracts - September ending contracts in this case - are the most popular ones amongst market participants. September call option contracts went out-of-the-money on the heels of slide in the spot market. Satyam Computers September call option contract at a strike price of 230 topped the market in terms of volume - about 4,913 contract changed hands. The contract ended the week out-of-the-money.
The same fate awaited Satyam's September call option at a strike price of 240. The contract ended the week out-of-the-money and during the course of the week notched a volume of 2,878 contracts.
One popular Satyam September call option contract that ended the week in-the-money was one at a strike price of 220. The contract registered a volume of 1,845 contracts last week.
Reliance's September call option at a strike price of 260 ended the week out-of the-money. The contract generated a volume of 1,390 contracts during the course of the week.
Investors that bought put option contracts had a happier time last week. Satyam's September contract at a strike price of 230 ended the week in-the-money. The contract generated a volume of 3,632 contracts.
Futures: In the single stock futures segment, the state-owned petro stocks, BPCL and HPCL, featured among the most actively traded contracts. As observed in the options segment, Septemebr contracts overwhelmed the single stock futures market in terms of volume.
Septemebr-ending BPCL contracts features in top 5 in terms of volume. The stock generated a volume of 14,282 contracts. Also in the top 5 were HPCL's Septemebr contracts. The stock's aggregate volume last week was 15,259 contracts.
Satyam's Septemebr contract was the most popular contract in the preceding week- and almost all the weeks before! The contract registered a volume of 41,846 contracts last week.
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