The Nifty Index futures saw rise in open interest by 473% for the June series and rise in open interest by 362% for the July series. The August 2016 series was introduced in the last week on expiry of the May series. Implied volatility on Nifty Options rose for puts and declined for calls in the last week. Sharp rise in volatility for put options and fall in volatility for call options indicates marginal support for Nifty at current levels.
L&T has witnessed sharp rise in open interest and turnover in the stock futures segment. The stock rose 14% in the last week after the announcement of the results. The company’s management expects L&T’s order inflow to rise 15% in the year ending 31 March 2017 (FY 2017). L&T expects 12-15% growth in revenue in the year ending 31 March 2017 (FY 2017). L&T reported 18.55% rise in consolidated net profit to Rs.24536.4 million on 17.88% rise in total income to Rs.333752.6 million in Q4 March 2016 over Q4 March 2015. L&T’s order book stood at Rs.2499490 million as on 31 March 2016, higher by 7% on year-on-year basis. International order book constituted 28% of the total order book.
A rise in turnover and open interest for the stock futures along with a rise in the stock price of L&T for the June series is positive for the company. The company’s earnings growth looks robust in the FY 2016-17 due to rise in order book and strong performance in the FY 2015-16.
Foreign Institutional Investors (FIIs) Derivative Statistics have shown fall in the open interest across Index Options, Stock Futures and Stock Options and rise in open interest in Index Futures on a week on week basis.