On Thursday, eight stocks including HAL and Indus Towers faced an F&O trade ban. The list also features Balrampur Chini Mills, Chambal Fertilizers, Hindustan Copper, India Cements, Piramal Enterprises, and SAIL, with Chambal Fertilizers, HAL, and Indus Towers as new additions.
GNFC and Sun TV Network were removed from the ban list on Thursday. The Future & Options contracts for a stock are banned when its open interest surpasses 95% of the market-wide position limits (MWPL), and the ban is lifted once it drops below 80%.
Trading in indexes is unaffected by such security bans, which only impact specific stocks under the F&O segment. This regulatory mechanism is designed to curb excessive speculative activity in the market.
The MWPL for Balrampur Chini Mills reached 92.7% of its limit on Wednesday, with open interest at 9.3 million, marking a 2.75% increase from the previous session. This regulatory oversight becomes significant during volatile market periods.
On Wednesday, the market experienced volatility, with Nifty50 starting strong but closing lower, while the BSE Sensex slightly increased to a new record high, pushed up by gains in private banking stocks. The Sensex ended up 36 points, and the Nifty fell by 42 points.
