Markets see red, Sensex down 246 points

Mumbai: The benchmark indices have opened lower in sync with the global markets. All sectoral indices are in red. RPL-RIL merger news is non-event for the markets.

At 9:55 am, the Sensex was down 246 points, to 8,646 and the Nifty was down 80 points, to 2,683.

Reliance Industries fell 2.15%, to Rs 1,238 and RPL slipped 0.65%, to Rs 75.85.

RIL-RPL merger

Reliance Petroleum, RPL shareholders will get one Reliance Industries, RIL share for every 16 shares held. RIL will extinguish treasury stock. This merger ratio is slightly in favour of RPL. RIL said merger effective from April 1, 2008.

RIL may have to dilute 5.3% stake. Mukesh Ambani, Chairman & Managing Director of RIL said merger follows enduring philosophy of creating shareholder value and this would be EPS accretive. He also said to issue 6.92 crore shares to RPL shareholders.

The Indian Rupee has hit all-time high of 51.55 a dollar in the opening trade as against 51.10 a dollar on Friday.

Asian markets are trading sharply lower. Hang Seng, Nikkei, Straits Times, Kospi and Taiwan fell 3-5%. Shanghai lost 0.4%.

In the US, S&P ended at 12-year low as US GDP declined 6.2% in 4Q. Government increased stake in Citi and GE slashed its dividend, were other reasons that added to the fall.

Dow Jones closed down 119.15 points or 1.7% at 7,063 that fallen for sixth straight months. S&P 500 broke its November 2008 low of 740 and dropped 2.4% at 735. The Nasdaq shed 1% at 1,377.8.

Market cues:

FIIs net sell USD 59 million in equity on February 26

MFs net buy Rs 65 crore in equity on February 26

NSE F&O Open Int up by Rs 3,430 crore to Rs 45,541 crore

F&O cues:

NSE F&O Open Int up by Rs 3,430 crore to Rs 45,541 crore

Nifty down 0.8%, Futures Open Int up 9% (Clear short buildup post expiry, evident by FII Index future figures as well)

Nifty March futures trading at a 28 point discount versus 20 point discount

Total Futures Open Int up by Rs 1339 cr , Total Options Open Int up by Rs 2091 crore

Nifty IVs at 38-42% levels

Nifty Open Int PCR up from 1.39 to 1.4

Nifty Calls add 24.7 lakh shares in Open Int , Nifty Puts add 39 lakh shares in Open Int

Nifty March 2600 put adds 8.55 lakh shares in Open Int

Nifty March 2700 put adds 7.54 lakh shares in Open Int

Nifty March 2500 put adds 6.8.7 lakh shares in Open Int

Nifty March 2700 Call adds 6.28 lakh shares in Open Int

Stock Futures add 3.78 cr shares in Open Int