Mumbai: Indian traders extended fewer CNX Nifty Index futures than the average rate over a six-month period as they await the Federal Reserve’s policy meeting for direction.

The rollover rate in Nifty July futures, due to expire on Thursday, was at 36%, according to data available at 3.41pm in Mumbai. That compares with a six-month average of 41%, according to data compiled by Bloomberg. Outstanding Nifty futures contracts totaled 17.71 million, the highest since at least February, data show. The India VIX Index, a measure of options costs, fell 2.8% to 15.92.

“Rollovers are a bit lower than average as traders remain cautious before the Fed meeting," Arjun Prajapati, vice-president at Asit C. Mehta Investment Interrmediates Ltd. in Mumbai, said in a phone interview. “Rollovers may pick up in the last two days. VIX may touch 18 before the Fed outcome."

While the Fed, which begins a two-day meeting on Tuesday, is widely expected to hold its policy steady, investors will be looking to its statement Wednesday for clues on when interest rates will be raised, as that could affect flows into emerging markets. The Nifty futures rollover rate signals investors’ confidence to take forward their bullish or bearish bets.

Nifty July futures fell 0.2% to 8,356, while contracts for delivery in August lost 0.2% to 8,398. The 50-stock Nifty index slid 0.3% to 8,337.

Indian equity futures and options contracts expire on the last Thursday of each month. Bloomberg