RPT-India stock futures end higher on short covering

(Repeats story issued on Tuesday)

MUMBAI, Sept 30 (Reuters) - Indian stock futures slipped to
fresh lows in early trade on Tuesday, but recovered significant
ground to end higher on value buying in the spot market by
local funds, after assurances from regulators and the
government lifted sentiment.

Investors covered short positions in several frontline
stocks that had been hammered down in the past few days of
foreign fund selling, and also in the index futures, analysts
said.

"Aggressive cash buying was seen in banking stocks,
followed by a few software stocks like Tata Consultancy and
Satyam. Real estate, which was hammered yesterday, also saw a
pullback," said Yogesh Radke, analyst at Edelweiss Securities.

Nifty October futures NIFc1 closed at 3,927.35 points, up
1.76 percent, while the benchmark spot index .NSEI ended 1.85
percent higher at 3,921.20 points. Premium to the spot narrowed
to 6.15 points, compared to 9.35 points on Monday.

Traders said with the Nifty staying below 3,800 in morning
trade, domestic institutions came into the market. Most action
was focussed on frontline banks, with ICICI Bank and HDFC Bank
seeing strong recovery on short covering.

"We are recommending buying into frontline stocks where
significant value-erosion has taken place. As a value investor,
it is time to buy," said Karun Mutha, head of derivatives at
IL&FS Investsmart.

Analysts expect the trend to continue on Wednesday, but see
investors liquidating positions towards the end of session,
ahead of a market holiday on Oct. 2.

"It all depends on global sentiments. Investors will not
leave positions open when they are unsure of how global markets
will shape up," Mutha said.

"I would recommend booking profits in the 4,100-4,200
points range.

Technical analysts see support for the Nifty at 3,750
points, while resistance is seen around 3,950 level.

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

OPEN INT.
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------- Reliance Petroleum Ltd
RPETnsc1 40563475

IFCI Ltd IFCInsc1
38765660

Ispat Industries Ltd ISPTnsc1
31593950

NIFTY OCT08 NIFc1
27962150

NTPC Ltd NTPCnsc1
26289250
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-------

TOP %AGE INCREASE IN OPEN INTEREST
----------------------------------------------------------------
---- COMPANY NAME RICs

CHG. %
----------------------------------------------------------------
---- CNXIT OCT08 CITc1

32.28%

KSK Energy Ventures KSKEnsc1
23.20%

Reliance Infrastructure RLINnsc1
19.64%

SREI Infrastructure Finance Ltd SREInsc1
16.10%

Info Edge (India) Ltd INEDnsc1
14.29%
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----

TOP %AGE DECREASE IN OPEN INTEREST
----------------------------------------------------------------
---- COMPANY NAME RICs

CHG. %
----------------------------------------------------------------
---- Piramal Healthcare
PIRAnsc1 50.00%

Container Corp of India Ltd CCRInsc1
50.00%

MINI NIFTY OCT08 CMYc1
19.19%

Sun TV Network Ltd SUTVnsc1
18.18%

Ansal Prop & Infra Ltd ANSPnsc1
14.27%
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---- (Reporting by Prashant Mehra and Sowmya Kamath; editing
by Sunil Nair)