Asia Press Agency

Tag: F&O

  • NSE Puts Ten Stocks under F&O Ban as MWPL Crosses 95%

    NSE Puts Ten Stocks under F&O Ban as MWPL Crosses 95%

    The National Stock Exchange (NSE) has imposed a ban on trading in the futures and options (F&O) segment for ten specific stocks as of October 18, 2023. This action was taken due to these stocks exceeding the market-wide position limit (MWPL) of 95%. However, it’s important to note that despite the F&O ban, these stocks are still available for trading in the cash market.

     

    The ten stocks that have been placed under the F&O ban list for October 18 are:

    • Balrampur Chini Mills
    • BHEL (Bharat Heavy Electricals Limited)
    • Delta Corp
    • GNFC (Gujarat Narmada Valley Fertilizers & Chemicals Limited)
    • Hindustan Copper
    • Indiabulls Housing Finance
    • India Cements
    • Manappuram Finance
    • MCX (Multi Commodity Exchange of India Limited)
    • SAIL (Steel Authority of India Limited)

     

    The NSE regularly updates the list of securities in the F&O ban based on the MWPL. When derivative contracts for these securities cross the 95% threshold of the MWPL, they are placed under the F&O ban period, following the stock exchange’s regulations. During this ban period, clients and members are permitted to trade in these derivative contracts, but only for the purpose of reducing their existing positions by creating offsetting positions. Any attempt to increase open positions during the F&O ban will result in appropriate penal and disciplinary action by the stock exchange.

     

    It’s important to understand that under the F&O ban, no fresh positions can be initiated for any of the F&O contracts related to the specified stocks. This restriction aims to control speculative trading and maintain market stability.

     

    In recent market developments, Indian equity benchmark indices have shown resilience by bouncing back on the previous day after experiencing three consecutive days of decline. This rebound was attributed to a recovery in global markets. The Sensex, representing the 30-share BSE index, increased by 0.39%, closing at 66,428.09 points. The Nifty, representing the broader NSE index, gained 0.40% to end at 19,811.50 points. The broader market also performed well, with the BSE smallcap gauge rising by 0.70% and the midcap index climbing by 0.39%.

     

    The Indian rupee displayed strength by consolidating within a narrow range and concluding the day with a modest gain of 3 paise. It closed at 83.24 against the US dollar. The rupee’s trading range for the day was between 83.22 and 83.26 at the interbank foreign exchange market.

     

    These recent market dynamics reflect the resilience and adaptability of India’s financial markets in response to both domestic and global factors.

  • Six Stocks Put Under Ban for Trade on October 11, 2023

    Six Stocks Put Under Ban for Trade on October 11, 2023

    The National Stock Exchange (NSE) has imposed a trading ban on six stocks in the futures and options (F&O) segment for Wednesday, October 11, 2023, as they have exceeded 95% of the market-wide position limit (MWPL). However, it’s important to note that these stocks will remain available for trading in the cash market. The affected stocks are as follows:

     

    • Delta Corp
    • Indiabulls Housing Finance
    • Punjab National Bank
    • L&T Finance Holdings Ltd
    • Manappuram Finance Ltd
    • MCX

     

    The NSE updates the list of securities under the F&O ban on a daily basis. When a stock is placed under the F&O ban period, no fresh positions are allowed for any of the F&O contracts related to that particular stock. Traders and investors can only decrease their positions through offsetting positions.

     

    The derivative contracts in these securities have exceeded the 95% threshold of the MWPL, leading to their inclusion in the F&O ban list by the stock exchange. The NSE has reminded all clients and members that any increase in open positions during the ban period will result in appropriate penal and disciplinary action.

     

    Despite these restrictions, the Indian stock indices experienced a strong rally on the previous trading day, with gains in financials, auto, and IT shares. The 30-share BSE Sensex surged by 0.87% or 566.97 points to close at 66,079.36, with 26 of its constituents ending in positive territory. The broader Nifty of the National Stock Exchange also saw a significant increase, rising by 0.91% or 177.50 points to settle at 19,689.85. This rally was driven by gains in stocks such as Coal India, Adani Ports, and Bharti Airtel.

     

    Please note that trading in the cash market for the affected stocks is not impacted by the F&O ban and will continue as usual. Traders and investors should stay informed about updates in the F&O ban list to make informed decisions in the stock market.

  • Indiabulls Housing Finance Faces F&O Ban on NSE

    Indiabulls Housing Finance Faces F&O Ban on NSE

    On Monday, September 4, 2023, Indiabulls Housing Finance found itself under a trading ban in the futures and options (F&O) segment on the National Stock Exchange (NSE). The reason cited for this trading ban on Indiabulls was that the security had crossed 95% of the market-wide position limit (MWPL), as confirmed by the NSE. However, it’s important to note that the stock will continue to be available for trading in the cash market.

     

    The NSE routinely updates its list of securities that fall under the F&O ban for trade on a daily basis. Securities enter this category when the derivative contract related to them crosses the threshold of 95% of the MWPL. As per the NSE’s announcement, during this period, all clients and members are allowed to trade in the derivative contracts of the affected security solely for the purpose of reducing their existing positions through offsetting positions. Any attempt to increase open positions during this period will result in appropriate penal and disciplinary action, as stated by the NSE.

     

    It’s important to understand that when a stock is placed under the F&O ban period, no fresh positions are permitted for any of the F&O contracts associated with that stock. Traders and investors need to be cautious and comply with the trading restrictions in such situations.

     

    In the preceding trading session, the Indian equity benchmarks, Sensex and Nifty, concluded the day on a positive note. This was the first trading session of September, and the indices benefited from widespread buying. Positive global cues and strong domestic macroeconomic data contributed to the optimistic sentiment.

     

    One significant driver of the positive sentiment was the release of gross domestic product (GDP) data, which revealed that the Indian economy grew at its fastest pace in a year during the June quarter. This development has the potential to attract foreign fund inflows, adding to the optimism in the domestic markets.

     

    The Sensex registered a gain of 556 points or 0.86%, closing at 65,387.16, while the Nifty recorded a gain of 182 points or 0.94%, closing at 19,435.30. For the week, both indices posted gains of 0.88% and 0.77%, respectively, marking a positive start to September after five consecutive weeks of losses.