Benchmark index futures premium widens on short covering

MUMBAI, Sept 26 (Reuters) - The premium on the benchmark
index futures for the current month widened on short covering
and the October series turned into premium on rollover of long
positions, traders and analysts said on Wednesday.

The rollover of futures derivatives contracts gained
momentum with broad market rollovers at over 63 percent.

But analysts warned that some fall is expected after the
expiry of September derivatives contracts on Thursday.

"There has been long rollovers and some amount of short
covering," said Aalap Shah, analyst at Dolat Capital Market.

He said most of the short covering has happened and this
has been the reason for the premium in Nifty September futures
even a day before the expiry.

Normally the premium or discount in futures comes close to
the spot value of the securities as the expiry nears.

The premium on Nifty September futures NIFc1 increased to
17.5 points to the 50-share NSE index .NSEI compared to 7.8
points on Tuesday.

The Nifty October futures NIFc2 turned into premium of
7.75 points from discount of 7.9 points on Tuesday.

The current month Nifty futures rose 0.28 percent to 4,958
points and the spot index ended marginally higher at 4,940.50
points, a record close.

"Short rollover has not happened and funds and traders are
waiting for some more rise to do it (short rollovers)," said
Sailav Kaji, head-derivatives at PINC Research.

Traders said there was lot of short covering in technology
stocks despite the Indian rupee touching a new high against the
dollar.

TOP FIVE CONTRACTS BASED ON OPEN INTEREST
----------------------------------------------------------------
------- COMPANY NAME RICs

OPEN INT.
----------------------------------------------------------------
------- Rel. Nat. Resources Ltd.
RENRnsc1 36722400

IFCI Ltd IFCInsc1
31539375

Reliance Petroleum Ltd RPETnsc1
26994300

Tata Teleservices (Maharashtra) Ltd TTMLnsc1
18810000

NIFTY NIFc1
17695300
----------------------------------------------------------------
------- TOP %AGE INCREASE IN OPEN INTEREST
----------------------------------------------------------------
---- COMPANY NAME RICs

CHG. %
----------------------------------------------------------------
---- HTMT Global Solutions
HGSLnsc2

489.11%

Karnataka Bank KBNKnsc2
331.01%

Nucleus Software Exports NSELnsc2
266.67%

Jet Airways JETnsc2
238.85%

Jammu & Kashmir Bank JKBKnsc2>
235.71%
----------------------------------------------------------------
---- TOP %AGE DECREASE IN OPEN INTEREST
----------------------------------------------------------------
---- COMPANY NAME RICs

CHG. %
----------------------------------------------------------------
---- Birla Corporation Ltd
BRLCnsc1 70.67%

Bata India Ltd BATAnsc1
58.65%

Kesoram Industries Ltd KSRMnsc1
57.48%

Oriental Bank Of Commerce ORBCnsc1
57.32%

CNX IT CITc1
57.09%
----------------------------------------------------------------
----- ((Reporting by Virendra Verma, editing by Sunil Nair;
Reuters Messaging: virendra.verma.reuters.com@reuters.net;
+91-22-6636 9299))