As 10 equities in the futures and options (F&O) segment exceeded 95% of the market-wide position limit (MWPL), the National Stock Exchange (NSE) prohibited trading in those stocks on Wednesday, October 9.
Nonetheless, the cash market will offer these stocks for trade. The list of securities that are prohibited from trading in F&O is updated daily by the NSE.
On October 9, the NSE’s F&O ban list listed the following ten stocks: Bandhan Bank, Birlasoft, GNFC, Granules India, Hindustan Copper, IDFC FIRST Bank, Manappuram Finance, PNB, RBL Bank, and SAIL.
According to the NSE, these securities’ derivative contracts have entered the stock exchange’s prohibition period after surpassing 95% of the market-wide position limit.
“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,” the NSE statement said.
When stock exchanges place F&O contracts in a certain stock during the ban period, no new positions are permitted.
Stock markets ended their six-day losing streak on October 8, when value investors picked up blue-chip companies including HDFC Bank, Reliance Industries, and Mahindra & Mahindra, sending the benchmark Sensex up roughly 585 points.
The 30-share BSE Sensex gained by 584.81 points or 0.72 per cent to settle at 81,634.81. It increased 713.28 points, or 0.88 per cent, during the day to reach an intraday high of 81,763.28.
The NSE Nifty closed at 25,013.15, up 217.40 points, or 0.88 per cent. It increased by 248.25 points, or 1%, to reach a high of 25,044, intraday.
The BSE small-cap index surged 2.44 per cent and the mid-cap gauge increased 1.86 per cent in the overall market.
Services saw a 3.25 per cent increase, capital goods saw a 2.82% increase, industrials saw a 2.81 per cent increase, power saw a 2.44 per cent increase, and telecommunications saw a 2.35 per cent increase.
