The Indian stock exchanges have added four stocks to the F&O ban list for today, Wednesday, June 26th, 2024. These stocks are Steel Authority of India (SAIL), Gujarat Narmada Fertilizers & Chemicals (GNFC), Punjab National Bank (PNB), and Indus Towers.
The National Stock Exchange (NSE) banned trading in four stocks in the futures and options (F&O) segment because they surpassed 95% of the market-wide position limit (MWPL).
If you hold shares of SAIL, GNFC, PNB, or Indus Towers, you can still buy or sell them on the cash market today. The ban only applies to options and futures contracts. However, this ban can affect the overall stock price as options trading usually adds to the liquidity (ease of buying or selling) of a stock.
Investors should closely monitor these stocks and the broader market conditions. If you were planning to trade options or futures contracts for these stocks today, you’ll need to adjust your strategy. You can consider:
- Trading in the cash market: You can still buy or sell shares of these companies on the regular stock exchange.
- Looking at alternative stocks: Explore options and futures contracts for other stocks not on the ban list.
- Waiting until tomorrow: The ban typically applies for a single trading day. You can resume options and futures trading for these stocks on Thursday, June 27th, unless the exchange extends the ban.
Remember: This news article provides a general explanation. It’s a good idea to talk to a financial advisor before making any investment choices.