April 5: NSE Bans 3 Stocks in F&O

5 Apr 2024 , 09:52 AM

On April 5, 2024, the National Stock Exchange (NSE) banned trading for three stocks under the futures and options (F&O) segment due to exceeding 95% of the market-wide position limit (MWPL).

The banned stocks include Hindustan Copper, SAIL, and ZEEL, which will remain unavailable for F&O trading, though they can still be traded in the cash market.

The NSE updates its list of securities under F&O ban daily, and the ban is imposed when derivative contracts cross 95% of MWPL, as per the exchange.

NSE mandates that clients/members can only trade in these derivative contracts to decrease existing positions; any increase will face penal actions. Fresh positions are prohibited during the F&O ban period for the specified stocks.

On the preceding day, the stock market witnessed a significant rebound with record highs in benchmark indices Sensex and Nifty, driven by buying in IT, consumer durables, and financial stocks.

The BSE Sensex closed at an all-time high of 74,227.63, rising by 0.47%, with intraday fluctuations between 73,485.12 and 74,501.73. The broader Nifty also reached a fresh peak of 22,514.65, up by 0.36%, with 31 out of 50 benchmark components ending with gains.

Notable sectoral gains were observed in IT (0.93%), consumer durables (0.85%), utilities (0.78%), and financial services (0.69%). Conversely, oil & gas (-1.64%), energy (-1.01%), and services (-0.59%) experienced declines. Large-cap stocks on the BSE gained by 0.34%, small-cap by 0.54%, while the midcap index slightly decreased by 0.11%.

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