On Thursday, January 9, the National Stock Exchange (NSE) prohibited trading in five equities in the futures and options (F&O) sector because they were over 95% of the market-wide position limit (MWPL). These equities will, nonetheless, be traded on the cash market. The NSE updates the list of securities prohibited from trading by the F&O daily.
F&O Ban List Today:
The five stocks on the NSE’s F&O ban list as of January 9 are Bandhan Bank, Hindustan Copper, L&T Finance, Manappuram Finance, and RBL Bank.
According to the National Stock Exchange, the derivative contracts in these securities have entered the stock exchange’s suspension period after over 95% of the market-wide position limit.
To reduce their positions by offsetting positions, all clients or members must trade in the derivative contracts of the securities above. The NSE statement states, “Any increase in open positions shall attract appropriate penal and disciplinary action.”
No new positions are permitted when the stock exchanges place F&O contracts in a particular stock during the ban period. In a tumultuous day, the January 8 stock benchmark indexes, the Sensex and Nifty, closed slightly down as investors remained cautious ahead of the earnings season due to lowered forecasts for economic growth.
Additionally, morale was harmed by a declining rupee and ongoing inflows of foreign funds.
The benchmark 30-share BSE Sensex dropped 50.62 points, or 0.06 percent, to close at 78,148.49. It fell 712.32 points, or 0.91 percent, to 77,486.79 throughout the day.
Adani Ports, UltraTech Cement, Larsen & Toubro, Sun Pharma, HDFC Bank, ICICI Bank, NTPC, and State Bank of India were the main underachievers among the 30-share blue-chip pack. The midcap index fell 1.09 percent, and the BSE smallcap gauge dropped 1.12 percent.
Consumer durables fell 1.86 percent, capital goods down 1.34 percent, services fell 1.26 percent, electricity fell 1.17 percent, and utilities fell 0.95 percent among the BSE sectoral indexes.
