Equity Futures:Traders sell Kotak Bk on worry over NPA, slower growth

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Equity Futures:Traders sell Kotak Bk on worry over NPA, slower growth

Monday, Jan 20

 

By Apoorva Choubey 

 

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MUMBAI – Concern over rising bad loans and moderation in credit growth prompted traders to aggressively sell the January futures of Kotak Mahindra , lifting open interest by 14%. 

 

In the market, the stock closed 5% lower at 1,617.90 rupees after the bank’s said gross non-performing loans ratio rose to 2.46% as on Dec 31 as against 2.32% a quarter ago.

 

The bank saw gross addition of non-performing loans worth 10.6 bln rupees during the quarter, higher than estimates. Loan growth came at 10%, sharply below the expected 14-15%.

 

aggressively bought the put of the lender and sold the call , suggesting that the stock may fall more. Put premiums surged 3-8 times. 

 

Traders also sold futures of HDFC Bank on similar concerns, with an over 2% rise in open interest. 

 

Among other , traders sold Finance Corp and Indian Corp on their likely exclusion from the CPSE ETF, while they bought Power Grid Corp and NMDC on their inclusion. 

 

Traders sold the futures of Tata Consultancy Services and after their Oct-Dec belied

 

Traders sold the January futures of the Nifty 50 as they see less scope for an upside given that hopes related to the measures likely in the Budget have largely been factored in. 

 

The Nifty 50 closed at 12224.55, down 127.80 points or 1% from the previous close.

 

Open interest in the January futures of the index rose 2% to 13.9 mln, and the contract provisionally ended at a premium of 41.45 points to the spot index. 

 

–Nifty 50 Jan ended at 12266.00; down 118.65 points; 

–Nifty 50 Feb ended at 12307.00; down 116.20 points; 82.45-point premium to spot

–Nifty 50 Mar ended at 12349.00; down 118.55 points; 124.45-point premium to spot 

 

The total turnover in the futures and options segment of the National Stock Exchange jumped to 12.8 trln rupees from 8.37 trln rupees on Friday.  

 

In the index options segment, the turnover rose to 11.2 trln rupees from 6.98 trln rupees. The total premium turnover of the index and stock options increased to 54.5 bln rupees from 41.91 bln rupees.

 

Futures and options contracts of Reliance Industries, Kotak Mahindra Bank, Tata Consultancy Services, Bharti Airtel, State Bank of India, HDFC Bank, IndusInd Bank, ICICI Bank, Axis Bank, HCL Technologies, Federal Bank, Bajaj Finance, and Tata Motors were among the most actively traded.  End

 

Edited by Mainak Moitra

 

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