Nine Stocks Face F&O Ban on NSE For November 24

Nine Stocks Face F&O Ban on NSE For November 24

Nine Stocks Face F&O Ban on NSE For November 24

In an unexpected move, the National Stock Exchange (NSE) has placed nine stocks under a trading ban for the futures and options (F&O) segment on Friday, November 24, 2023. This decision was taken as these stocks surpassed 95% of the market-wide position limit (MWPL). Despite this ban in the F&O segment, trading for these stocks remains open in the cash market.

The Impacted Stocks

The affected stocks include notable names such as Balrampur Chini Mills, Hindustan Copper, Hindustan Petroleum Corp Ltd (HPCL), Indiabulls Housing Finance, India Cements, Manappuram Finance, MCX, RBL Bank, and ZEEL. The NSE routinely updates its F&O ban list, and these stocks have currently crossed the threshold of 95% of the MWPL. The NSE has advised that all trading in these securities should be aimed at reducing positions by offsetting them. The exchange warned of penal and disciplinary actions for any increase in open positions during this ban period.

Trading Guidelines During Ban

The NSE’s strict guidelines prohibit fresh positions in any of the F&O contracts for the affected stocks during the ban period. This measure ensures market stability and prevents excessive speculative activity that might lead to undue volatility. Traders holding positions in these stocks are encouraged to balance and decrease their positions to comply with the exchange’s directives.

Market Performance and Economic Indicators

The Indian stock market showed a marginal decline in a volatile trading session, particularly influenced by the pullback in IT stocks after their recent rally. The BSE Sensex and Nifty both saw slight drops, while specific sectors like healthcare, IT, and consumer durables experienced declines. Conversely, sectors such as realty, oil & gas, and energy saw growth. The Indian rupee remained stable against the US dollar, showcasing minor fluctuations within the trading day.