On November 18, the National Stock Exchange (NSE) announced a ban on trading in five stocks in the futures and options (F&O) segment. This decision was made as these stocks had exceeded 95% of the market-wide position limit (MWPL). However, investors can still trade these stocks in the cash market. The NSE updates the list of securities in the F&O ban every day.
The five stocks that have been placed on the F&O ban list are Aarti Industries, Aditya Birla Fashion and Retail, GNFC, Granules India, and Hindustan Copper. According to the NSE, the derivative contracts in these securities have crossed the 95% limit and have been placed in the ban period.
In its statement, the NSE has advised all clients and members to only trade in these derivative contracts to decrease their positions through offsetting positions. Any increase in open positions will result in appropriate penal and disciplinary action.
During the ban period, no new positions can be taken in these stocks in the F&O segment. This is a measure taken by the stock exchange to prevent excessive speculation and maintain market stability.
On November 14, the benchmark Sensex witnessed a decline of 110 points in a volatile trading session. This was the third consecutive day of losses for the index, which was attributed to continued selling by foreign institutional investors (FIIs), disappointing quarterly results, and rising inflation. The stock markets were closed on November 15 due to the Guru Nanak Jayanti holiday.
The Sensex closed at 77,580.31, down by 110.64 points or 0.14%. The index started on a positive note but lost momentum later due to increased selling. It dropped by 266.14 points or 0.34% to 77,424.81 during the day.
The broader NSE Nifty also witnessed a decline of 26.35 points or 0.11% to close at 23,532.70, extending its losing streak to the sixth day. However, the BSE small-cap index saw a rise of 0.83% and the mid-cap index went up by 0.41%.
Among the sectoral indices, utilities saw a decline of 0.88%, followed by oil & gas (0.48%), power (0.37%), services (0.09%), metal (0.07%), and consumer durables (0.05%). This information is crucial for investors to make informed decisions.
In conclusion, the NSE’s decision to ban trading in certain stocks in the F&O segment is a precautionary measure to maintain market stability. Investors are advised to follow the guidelines and trade responsibly. Stay updated with the latest market trends and data to make informed investment decisions.