The National Stock Exchange (NSE) banned the trading in futures and options (F&O) of up to six stocks/securities on Monday, July 24, 2023. Manappuram Finance, Indiabulls Housing Finance, Delta Corp, L&T Housing Finance, Balrampur Chini Mills, and Punjab National Bank are the stocks/securities placed on the National Stock Exchange’s futures and options (F&O) ban for trade on Monday. According to the NSE, the stocks mentioned above are prohibited in the F&O sector because they have exceeded 95% of the market-wide position limit (MWPL). During the F&O ban period, no new positions are permitted for F&O contracts in that stock.
“Overnight fall in tech-heavy Nasdaq triggered a wave of massive correction in local software stocks led by Infosys, which slashed the revenue growth guidance for the rest of the year due to sharp deterioration in discretionary spending by the clients. The record upsurge in the markets in such a quick time was already raising concerns of expensive valuations. Hence, investors took this opportunity of weak US cues to prune their holdings, although India’s fundamentals remain on strong footing. Technically, on intraday charts, the Nifty has breached the crucial support of 19825, and post breakdown it is comfortably trading below the same, which is largely negative,” said Amol Athawale, Vice President – Technical Research, Kotak Securities.
Manappuram Finance, Indiabulls Housing Finance, Delta Corp, RBL Bank, L&T Housing Finance, Balrampur Chini Mills, and Punjab National Bank were the stocks/securities were put on the F&O ban earlier on Friday, July 21, 2023.
On Friday, the benchmark indices NSE Nifty 50 and BSE Sensex ended the trading session deep in red. The Nifty 50 plunged 234.15 points or 1.17% to 19,745 and Sensex tumbled 887.64 points or 1.31% to 66,684.26. In sectoral indices, Bank Nifty sank 111.70 points or 0.24% to 46,075.20, Nifty IT tanked 1,274.85 points or 4.09% to 29,871.05, Nifty FMCG tumbled 1% while Nifty PSU Bank rose 0.25%.