Equity Futures:Traders sell Kotak Bk on worry over NPA, slower growth
Monday, Jan 20
By Apoorva Choubey
In the cash 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%.
Investors aggressively bought the put options of the lender and sold the call options, 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.
Traders sold the futures of Tata Consultancy Services and Reliance Industries after their Oct-Dec earnings belied expectations.
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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