Nifty futures premium narrows after foreigners sell contracts
By Bloomberg
The premium of India’s CNX Nifty index futures over the underlying gauge narrowed to the smallest level this month after data showing foreigners sold the most number of futures contracts in more than a week.
Nifty futures for May delivery rose 0.2 percent to 8,252.40 at 1:41 p.m. in Mumbai, while the 50-member Nifty added 0.3 percent to 8,249.35. Foreigners sold a net 78,067 futures contracts on Thursday, the most since May 6. They have sold more than 255,000 futures contracts since April derivatives expired last month, according to data compiled by Bloomberg.
“Foreigners seem to have spent their gas, they need to fill the tank,” Abhijit Phatak, an independent options trader, said by phone from Pune.
The futures selloff in May has come amid concern that earnings growth will slow and the passage of legislation in the Indian parliament will be delayed. Global investors have also been net sellers of stocks in 13 of the previous 14 sessions, taking outflows in May to $778 million, the most among Asian markets tracked by Bloomberg.
The VIX Index, India’s benchmark gauge of option prices, fell 2.3 percent to 20.22, poised to halt three days of gains.
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