Under the futures and options (F&O) section, the National Stock Exchange (NSE) has banned trading in seven stocks on Tuesday, July 11, 2023. The NSE says that the stocks have been banned because they have reached 95% of the market-wide position limit (MWPL). On the cash market, however, the stock will be open for trade.
The stock exchange’s F&O ban list for Tuesday includes Bharat Heavy Electricals Ltd (BHEL), Delta Corp, Granules India, India Cements, Indiabulls Housing Finance, Punjab National Bank, and Zed Entertainment Enterprises Ltd. Every day, the NSE changes the list of assets that are not allowed to be traded in F&O. The derivative contracts for the named securities have reached 95% of the market-wide position limit, so the stock exchange has banned them for now.
“Please be advised that all clients and members are required to exclusively trade in the derivative contracts of the aforementioned security in order to reduce their positions through offsetting positions. NSE said that if the number of open jobs went up, there would be penalties and punishments. When a stock is put on a F&O ban by the stock exchange, no new positions can be opened for any F&O contracts on that company.
The Sensex and the Nifty finished the day on July 10 with small gains, led by shares of heavyweight Reliance Industries. However, the mood around the world was cautious ahead of important macro data and corporate earnings in the coming week.
At the end of the day, the Sensex was up 64 points, or 0.10 percent, to 65,344.17, and the Nifty was up 24 points, or 0.12 percent, to 19,355.90. Midcaps and smallcaps didn’t do as well as largecaps did. The BSE Midcap index went down 0.45% and the Smallcap index went down 0.26.
In the Sensex, which is a group of 30 stocks, 21 stocks ended in the red and only 9 stocks finished with a gain. The main index was saved by the rise in shares of Reliance Industries. The stock went up 3.78% and added 302 points to the Sensex index by itself.
Up to 226 equities, including Reliance Industries, Bajaj Auto, Bank of Baroda, Bharti Airtel, Indian Oil Corporation, JSW Steel, and Tata Motors, reached their 52-week highs during intraday trade on the BSE.
After moving in only one direction, the market is currently consolidating and profit-taking at higher levels amid weak global cues. The latest figures showed that China is close to deflation, which made investors feel bad. This week is the start of Q1 earnings season, so we expect the market to react to individual stocks, starting with the tech sector, said Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services Ltd.