Traders roll over half the Jan futures before expiry

Indian traders replaced half the CNX Nifty Index January stock-index futures expiring on Thursday with February contracts, signalling optimism the rally may continue.

Traders rolled over 51 per cent of January futures as of 11:24 am here. That compares with the six-month average of 44 per cent two days before expiration, data compiled by Bloomberg show. The India VIX, a gauge of protection against stock-market swings using options, advanced 4.3 per cent. The 50- stock Nifty Index added 0.4 per cent, bound for a record high and a ninth day of gains, the longest streak in seven months.

"The rollover to February is strong, on hopes the government will take steps to boost growth in the federal budget," Suniil Pachisia, vice-president at Pratibhuti Viniyog said in a phone interview. "A lot of long positions are getting rolled." (ACTION AHEAD OF F&O EXPIRY)

The Nifty has increased eight per cent this month, heading for its steepest jump since October 2013. Foreign investors have poured $1.24 billion into Indian stocks in January, amid expectations that Prime Minister Narendra Modi will extend his reform agenda to spur growth in Asia's third-largest economy. The federal budget is due on February 28.

CNX Nifty January futures rose 0.4 per cent to 8,957.25, while the February contract advanced 0.5 per cent to 9,027.75. Derivatives expire on last Thursday of every month.