COT Market Review: Our weekly analysis of activity in the carryover (badla) and futures markets.
Volume: Stock-wise information on total number of shares carried over on the dates indicated.
Value: Stock-wise information on total value of shares carried over on the dates indicated.
Rate: Financing cost charged in Rs/share for individual stocks based on interest rate and liquidity conditions in the market.


CFS Market Review
Monday November 05,2001




  • Average carryover charges declined by 260 basis points (w-o-w) to 14.8% on Friday, while total volume in the badla market was 132.4m shares (including 39.5m shares of Hubco that is currently on spot trading). Badla value increased by 8% from Rs2.8b last week to Rs3.1b (including Hubco) this week.
  • Activity in PTCL picked up this week in the carryover market, with volume increasing from 39.2m shares to 56.4m shares, as positions were shifted from Hubco, which is trading on the t+1 settlement system, to PTCL.
  • Once again there was a surge in badla volume in Sui North from 5.56m shares last week to 10.95m shares this week. This phenomenon was observed earlier in the month as well, when carryover volume increased from 3.6m shares on 4th October to 10.1m shares on 5th October as off-market badla was brought back into the market for a day. We think these off-market transactions have once again been brought back into the carryover market, with volume surging to 10.6m shares on 30th October.
  • Leveraged buying in ICI has also increased this week with carryover volume increasing by 74.5% to 4.15m shares.
  • There has been increased activity in the futures market in Hubco since October 31st when Hubco went on spot trading. We think this is a consequence of market players hedging themselves against a price decline in Hubco. Specifically, delivery based buying that entered the badla market on October 31st (and cannot be offloaded until November 9th) was matched with an offsetting transaction in the futures market. Hence, these shares that would be available on November 9th would be rolled over in the carryover market until due for delivery in the futures market. In this way, positions taken on October 31st have been hedged against any price decline following the November 5th board meeting of Hubco.
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The above information and advice is given in good faith, without any legal responsibility. Taurus Securities Limited or individuals connected with it may have used research material before publication and may have positions in or may be materially interested in the securities mentioned herein.