In a recent development, the National Stock Exchange (NSE) has imposed a ban on trading twelve stocks under the futures and options (F&O) segment for Thursday, May 16, 2024. This action comes as these securities surpassed 95% of the market-wide position limit (MWPL), as disclosed by the NSE. However, it’s worth noting that these stocks remain available for trading in the cash market.
Stocks Affected
The list of stocks under the F&O ban includes Balrampur Chini Mills, Biocon, Birlasoft, GMR Airports Infrastructure, Granules India, Hindustan Copper, Vodafone Idea, India Cements, LIC Housing Finance, Piramal Enterprises, SAIL, and ZEEL. The NSE regularly updates this list based on market dynamics.
Trading Restrictions
According to the NSE, derivative contracts of the aforementioned securities have crossed the 95% MWPL threshold, leading to their placement under the ban period. As per the exchange’s statement, traders and members are only permitted to engage in derivative contracts of these securities to reduce existing positions. Any attempt to increase open positions will result in appropriate penal and disciplinary measures.
Market Performance
In trading on May 15, the benchmark Sensex experienced a decline of 117 points, breaking its three-day winning streak. This downturn was attributed to selling pressure on index heavyweight shares such as HDFC Bank, Reliance Industries, and TCS. The BSE Sensex settled at 72,987.03, marking a decline of 117.58 points or 0.16%. Throughout the day, it fluctuated between a high of 72,822.66 and a low of 72,987.03.
The broader Nifty also witnessed a slight dip, closing at 22,200.55 after losing 17.30 points or 0.08%. During trading hours, it ranged from a high of 22,297.55 to a low of 22,151.75. Notably, the smallcap gauge recorded a gain of 0.96%, while the midcap index saw an uptick of 0.60%, outperforming the frontliners.
As market volatility persists, investors continue to monitor developments closely to navigate the evolving landscape effectively.