The National Stock Exchange (NSE) has placed five stocks in the Futures and Options (F&O) ban list on January 13 due to crossing 95% of the market-wide position limit (MWPL). The stocks affected include Bandhan Bank, Hindustan Copper, L&T Finance, Manappuram Finance, and RBL Bank.
F&O Ban Details
The NSE enforces the F&O ban when the derivative contracts of a security cross 95% of the MWPL. During this ban period, traders can only reduce their positions through offsetting trades. Any increase in open positions will attract penalties and disciplinary actions.
However, these stocks remain available for trading in the
cash market.
Stock Market Performance Recap
Equity benchmark indices on January 10 declined for the
third straight session as global market weakness continued to weigh on
investors' minds. Economic growth and quarterly earnings have been a dampener
for the investor sentiment.
BSE Sensex fell by 241.30 points, or 0.31%, to close at
77,378.91. The index fluctuated significantly during the session, hitting a
high of 77,919.70 and a low of 77,099.55, a swing of 820.15 points.
NSE Nifty also eased by 86.5 points (0.37%) and settled at
23,440.50.
Market Breadth and Key Losers
On BSE, the market breadth was in the negative region with
3,167 losing stocks, while 827 saw an advance. The remaining was 84 in nature.
Amongst the bluechip names, the major loser were IndusInd
Bank, NTPC, UltraTech Cement, Sun Pharma, Axis Bank, State Bank of India, Tata
Steel, Power Grid, Adani Ports, and Kotak Mahindra Bank.
Conclusion
The NSE frequently updates the F&O ban list to keep speculative activity within acceptable limits and prevent market instability. Investors are therefore encouraged to track these updates and amend their trading strategies appropriately.
