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Sensex futures bridges gap, Infosys helps

Sensex futures bridges gap, Infosys helps
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First Published: Wed, Jul 11 2007. 07 57 PM IST
Updated: Wed, Jul 11 2007. 07 57 PM IST
Mumbai: India’s benchmark stock index futures narrowed its discount to the spot market on short covering on 11 July, led by the contract on software bellwether Infosys Technologies Ltd, traders and analysts said.
Short positions had previously been built up in Infosys futures, but the company’s financial results for the fiscal first quarter proved better than expectations, they said.
The July contract on the counter swung to a premium compared with a discount in the previous session.
“It was event specific risk which has ceased and hedged positions have been covered,” said Aalap Shah, derivatives analyst, Dolat Capital Market Pvt. Ltd.
Nifty July futures ended with a discount of 4.95 points compared with 13.15 points to the 50-share NSE index on Tuesday.
The contract fell 0.24% to 4,282.20 points while the spot index was down 0.43% to 4,387.15 points.
Another analyst, however, said a large number of short positions remained open, despite Wednesday’s squaring off.
Traders said there was also a fresh built-up of positions in the futures of banks on expectation of a fall in interest rate and lower inflation.
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First Published: Wed, Jul 11 2007. 07 57 PM IST