- The National Stock Exchange (NSE) has banned eight stocks from trading under the futures and options (F&O) segment on Monday, May 13, 2024.
- The stocks have been put on ban as they crossed 95% of the market-wide position limit (MWPL).
- These stocks include Balrampur Chini Mills, Canara Bank, GMR Airports Infrastructure, Hindustan Copper, Vodafone Idea, PNB, SAIL, and ZEEL.
Eight stocks have been banned from trading under the F&O segment by the NSE due to crossing the MWPL, affecting the market dynamics for May 13, 2024.
NSE Bans Eight Stocks from F&O Trading
The NSE has put eight stocks under the F&O ban for May 13, 2024, as they crossed the 95% threshold of the MWPL. The stocks include Balrampur Chini Mills, Canara Bank, GMR Airports Infrastructure, Hindustan Copper, Vodafone Idea, PNB, SAIL, and ZEEL. However, these stocks will still be available for trading in the cash market.
Impact of the F&O Ban on Market Dynamics
The ban on these stocks from the F&O segment could significantly impact the market dynamics. The derivative contracts in these securities have crossed 95% of the MWPL, leading to their ban by the NSE. As per the NSE statement, all clients/members shall trade in the derivative contracts of these securities only to decrease their positions through offsetting positions. Any increase in open positions will attract penal and disciplinary action. No fresh positions are allowed for any of the F&O contracts in these stocks during the ban period.
Market Performance Amid the F&O Ban
Despite the F&O ban on these stocks, the equity benchmark indices Sensex and Nifty found firmer ground on May 10, propelled by a rally in market heavyweights like Reliance Industries, ITC, and Bharti Airtel. The 30-share BSE Sensex climbed 260.30 points or 0.36 per cent to settle at 72,664.47, while the NSE Nifty climbed 97.70 points or 0.44 per cent to 22,055.20. However, on a weekly basis, the BSE benchmark tanked 1,213.68 points or 1.64 per cent, and the Nifty declined 420.65 points or 1.87 per cent.
Conclusion
The ban on the eight stocks from the F&O segment by the NSE could lead to a shift in market dynamics. However, the market has shown resilience with the Sensex and Nifty finding firmer ground. It remains to be seen how the market will react to these changes in the coming days.
