Indian stock market today: 9 stocks banned for trade under F&O segment by NSE
In a surprising turn of events, the National Stock Exchange (NSE) has banned a total of 9 stocks for trade under the futures and options (F&O) segment on Monday, April 15, 2024. The securities have been put on ban as they crossed 95% of the market-wide position limit (MWPL), according to the NSE.
The stocks that have been banned for trade under the F&O segment include Balrampur Chini Mills, GNFC (Gujarat Narmada Valley Fertilizers Chemicals), Hindustan Copper, Idea, India Cements, Metropolis Healthcare, National Aluminium Company, Piramal Enterprises, and ZEEL.
While these stocks will not be available for trading in the F&O segment, they will still be available for trading in the cash market. The NSE updates the list of securities in the F&O ban for trade every day, based on their market-wide position limits.
According to the NSE, derivative contracts in the mentioned securities have crossed 95% of the market-wide position limit, leading to the ban on trading in the F&O segment. No fresh positions are allowed for any of the F&O contracts in these stocks during the ban period.
Investors and traders are advised to decrease their positions through offsetting positions in the derivative contracts of these securities. Any increase in open positions during the ban period may attract appropriate penal and disciplinary action, as stated by the NSE.
The news of the ban on these 9 stocks comes after a recent dip in the benchmark equity indices Sensex and Nifty. On April 12, both indices saw a decline of 1% due to profit-taking by investors. The Sensex dropped by 793.25 points to settle at 74,244.90, while the Nifty declined by 234.40 points to close at 22,519.40.
All Nifty sectoral indices closed in the red, indicating a broad-based sell-off in the market. Investors are advised to stay cautious and monitor the market closely during this period of volatility.
