The National Stock Exchange (NSE) has imposed a trading ban on six stocks for the futures and options (F&O) segment on Wednesday, September 6, 2023. These stocks have exceeded 95% of the market-wide position limit (MWPL) in the F&O segment, as per NSE regulations. While these stocks are under the F&O ban, they will still be available for trading in the cash market.
The six stocks placed under the F&O ban on September 6, 2023, are:
- BHEL (Bharat Heavy Electricals Limited)
- India Cements
- Delta Corp
- Hindustan Copper
- Balrampur Chini Mills Limited
- Indiabulls Housing Finance
NSE regularly updates the list of securities under the F&O ban for trade based on their MWPL positions. During the F&O ban period, traders and investors are not allowed to initiate new positions in F&O contracts for the mentioned stocks. However, they can reduce their existing positions through offsetting transactions.
The NSE has also issued a statement regarding the F&O ban, stating, “It is hereby informed that all clients/members shall trade in the derivative contracts of said security only to decrease their positions through offsetting positions. Any increase in open positions shall attract appropriate penal and disciplinary action.”
In the broader equity market, the benchmark indices, Sensex and Nifty, closed higher for the third consecutive session on September 5, 2023. This positive momentum was driven by encouraging domestic macroeconomic data. The mid-cap and small-cap segments outperformed the blue-chip indices, with mid-caps reaching new highs.
The BSE Sensex closed higher by 152.12 points or 0.23% at 65,780.26, while the Nifty ended at 19,574.90, up 46.10 points or 0.24%. These gains were attributed to India’s first-quarter gross domestic product (GDP) growth of 7.8%, marking the fastest pace in a year.
The Nifty Midcap 100 index reached an all-time high, surpassing the 40,000-mark on Tuesday, led by strong bullish momentum in mid-cap stocks. Both the Nifty Smallcap 100 and Nifty Midcap 100 indices have shown significant growth this year, with gains of more than 30% and 27%, respectively.
