The Indian stock market witnessed a significant development on Friday, April 12, 2024, with a total of 8 stocks being banned for trade under the futures and options (F&O) segment by the National Stock Exchange (NSE). These securities were placed on the ban list as they exceeded 95% of the market-wide position limit (MWPL), according to the NSE. However, it’s important to note that these stocks remain available for trading in the cash market.
Stocks on F&O Ban List Today
The 8 stocks that have been placed on the F&O ban list by the stock market exchange for April 12 are:
– Balrampur Chini Mills
– Exide Industries
– Hindustan Copper
– Idea
– India Cements
– National Aluminium Company
– SAIL (Steel Authority of India)
– ZEEL (Zee Entertainment Enterprises Limited)
The NSE regularly updates the list of securities under the F&O ban for trade, and in this case, these stocks have crossed the 95% market-wide position limit for derivative contracts.
Trading Guidelines during F&O Ban Period
During the F&O ban period, clients and members are required to trade in the derivative contracts of these securities only to decrease their positions through offsetting positions. Any increase in open positions will result in appropriate penal and disciplinary action, as mentioned by the NSE.
Fresh positions are not allowed for any of the F&O contracts in these particular stocks while they are under the ban period by the stock exchanges.
Market Performance on April 10
In related market news, on April 10, the benchmark Sensex made a significant climb, surging 354 points to close above the record 75,000 mark for the first time. The broader Nifty also scaled a fresh lifetime high, driven by gains in FMCG, energy, and metal shares.
– The BSE Sensex climbed 354.45 points or 0.47% to reach an all-time high of 75,038.15.
– The Nifty of the NSE advanced by 111.05 points or 0.49% to close at a record peak of 22,753.80.
Sectoral Performance
Various sectors showed positive movements on April 10:
– Oil & gas jumped 1.74%
– Energy surged by 1.71%
– Metal stocks rose by 1.66%
– Commodities gained 1.30%
– Services sector showed an increase of 1.15%
In the broader market, the BSE midcap index climbed 0.89% and the smallcap index advanced 0.46%.
These developments indicate a positive sentiment in the Indian stock market, with investors closely watching the performance of these banned stocks along with the overall market trends.
This ban serves as a regulatory measure to ensure fair and orderly trading practices in the derivatives segment, as per the guidelines set by the NSE. Investors and traders are advised to adhere to the guidelines provided during the ban period for the mentioned stocks.
