The National Stock Exchange (NSE) has imposed a ban on trading in 11 stocks in the Futures and Options (F&O) segment for Monday, October 16, 2023, as these stocks have exceeded 95% of the market-wide position limit. However, these stocks will still be available for trading in the cash market.
The 11 stocks that have been placed on the F&O ban list by the NSE include Steel Authority of India (SAIL), Hindustan Copper, BHEL, Sun TV Network, India Cements, Balrampur Chini Mills, L&T Finance Holdings, Punjab National Bank, Delta Corp, Indiabulls Housing Finance, and Manappuram Finance.
The NSE updates the list of securities in the F&O ban on a daily basis based on their market-wide position limits.
According to the NSE, the derivative contracts in these mentioned securities have exceeded 95% of the market-wide position limit, prompting the stock exchange to impose the ban.
Traders and investors have been informed that they can only trade in derivative contracts of these securities to reduce their positions through offsetting positions. Any increase in open positions during this period will result in appropriate penal and disciplinary action, as stated by the NSE.
When a stock is placed under the F&O ban period, no fresh positions are allowed for any of the F&O contracts in that particular stock. The ban is aimed at preventing excessive speculation and manipulation in these securities.
The market closed on a slightly negative note on the last trading day, with heavyweight stocks like HDFC Bank, Kotak Mahindra Bank, State Bank of India, and Axis Bank witnessing substantial selling pressure in the final hours of trading. The Nifty 50 lost 42.95 points to close at 19,751.05, while the Sensex fell 125.65 points to close at 66,282.74. Additionally, concerns about US inflation affected IT stocks and weighed on market sentiment. Despite the Friday decline, the benchmarks recorded weekly gains of nearly 0.5% each, thanks to a relief rally earlier in the week due to easing US yields and dovish comments from US Federal Reserve officials.