NSE F&O Ban: PNB, BHEL, ZEEL, Indiabulls Housing, other stocks under ban on July 12, Wednesday The National Stock Exchange (NSE) banned the trading in futures and options (F&O) of up to eight stocks/securities on Wednesday, July 12, 2023. Punjab National Bank, Manappuram Finance, Delta Corp, Indiabulls Housing Finance, ZEEL, India Cements, Granules India, and BHEL are the stocks/securities placed on the National Stock Exchange’s futures and options (F&O) ban for trade on Wednesday. According to the NSE, the stocks mentioned above are prohibited in the F&O sector because they have exceeded 95% of the market-wide position limit (MWPL). During the F&O ban period, no new positions are permitted for F&O contracts in that stock. “Markets may log steady gains in early trades Wednesday thanks to a sharp upsurge in the overnight US markets. With Asian indices, too, witnessing strong gains, local indices could advance further, even as concerns of the market being in an overbought position looms. Investors will focus on inflation numbers set to be announced later in the day, while IT majors TCS and HCL Tech would set the tone with their Q1 results, which could give some indication of the global IT sourcing scenario and the outlook on the same. Amid uncertain global environment and a slowdown in discretionary spending by clients, the June quarter earnings are seen to be weaker than expected,” said Prashanth Tapse, Senior VP (Research), Mehta Equities. On Tuesday, the domestic indices NSE Nifty 50 and BSE Sensex ended broadly in green. The NSE Nifty 50 rose 83.50 points or 0.43% to 19,439.40 and BSE Sensex surged 273.67 points or 0.42% to 65,617.84. In sectoral indices, Bank Nifty fell 0.26%, Nifty Financial Services tumbled 0.44% while Nifty Auto soared 1.39%, Nifty FMCG jumped 1.23% and Nifty Pharma gained 1.04%.
However, he believes that the impact on the Indian market is going to be temporary since there could be some short-term impact on flows into Indian equity markets. But since the Indian economy is on a strong wicket and will continue to remain resilient.
“Improved fiscal situation, controlled current deficit, stable interest scenario combined with good corporate earnings should lead to limited impact on the Indian bond market and equity market too,” he added.
The midcap and smallcap indices took a bigger knock with the BSE MidCap fell 2.51%, while BSE SmallCap index dived 4.18%. According to Amnish Aggarwal, head, research, Prabhudas Lilladher, the valuations were already high and some correction was expected. “If the situation sustains as it is then further correction can’t be ruled out,” Aggarwal said.
Telecommunication and industrials indices were the top laggards with BSE Telecommunication declining 3.82%, followed by BSE Industrials falling 3.26%. JSW Steel (-2.99%), Tata Steel (-2.52%) and Tata Consultancy Services (-2.44%) were the top losers of Sensex.
Surprisingly, both foreign portfolio investors and domestic institutional investors were net buyers today. While, FPIs net bought shares worth Rs 252.25 crore, DIIs have purchased shares worth Rs 1,111.84 crore, as per provisional data from exchanges.
Calling this a “normal phenomena” Pankaj Pandey, head, research, ICICI Direct said, “I will not really give too much weight to a single day buying figure. Amid concerns of elevated interest rate and geopolitical tensions, in a typical market cycle, 8-10% correction is possible at any point in time.”
The brunt of geopolitical conflict, elevated interest rates and rising crude oil prices was also felt by other Asian- Pacific markets. Jakarta Composite Index lost 1.57% followed by Shanghai Composite Index and PSEi, which fell 1.47% and 0.89%, respectively. Nikkei and KOSPI declined 0.83% and 0.76%.