The National Stock Exchange (NSE) has announced the exclusion of five stocks from the Futures & Options (F&O) segment, effective from the June series. The affected stocks are:
- Apollo Tyres
- Deepak Nitrite
- Escorts Kubota
- MRF
- Ramco Cements
Why Are These Stocks Being Excluded?
The NSE periodically reviews stocks in the derivatives segment based on criteria such as market-wide position limits (MWPL), trading volume, and liquidity. If a stock fails to meet the required parameters, it is removed from the F&O segment. The exclusion does not impact the trading of these stocks in the cash market, but it means that traders will no longer be able to take leveraged positions in these stocks through futures and options contracts.
Impact on Investors & Traders
- Reduced Liquidity – The removal of stocks from F&O may lead to reduced liquidity, as traders who primarily deal in derivatives may shift their focus elsewhere.
- Lower Volatility – Since F&O trading often contributes to short-term price fluctuations, these stocks may experience reduced volatility post-exclusion.
- Stock-Specific Reactions – Investors should monitor these stocks closely as their exclusion from F&O could influence price movements in the near term.
Disclaimer:
The information provided in this article is for informational purposes only and should not be considered as financial or investment advice. Stock market investments are subject to market risks, and past performance does not guarantee future results. Readers are advised to conduct their own research and consult with a qualified financial advisor before making any investment decisions. The author and the website (SensexNifty.com) are not responsible for any financial losses incurred based on the information provided in this article.
