BHEL, India Cements, 2 others under M&O ban placed on NSE for July 10; check details

Bharat Heavy Electricals Ltd (BHEL), Delta Corp, Granuls India and India Cements are the four stocks listed on the exchange’s F&O ban list on Monday. The NSE updates the list of securities in M&O ban from trading every day. The derivative contracts in the said securities have exceeded 95 percent of the market-wide position limit and are currently placed in the ban period by the exchange, according to NSE.

It is hereby notified that all Clients/Members will only trade the derivative contracts of the said security to reduce their positions through Offset Positions. Any increase in open positions will result in appropriate criminal and disciplinary action.”

No new positions are allowed for any of the M&A contracts in the affected stock when it has been placed under the M&A prohibition period by the exchanges.

Read also: India’s foreign exchange reserves rise $1.85 billion to $595.05 billion; foreign currency assets at $527.9 billion

The domestic stock market broke through with gains and sharp losses on Friday, July 7, as investors jumped to take some money off the table amid weak global signals. Concerns about rate hikes were reinforced by strong US macro data.

US economic data showed that the world’s largest economy remains strong despite a series of rate hikes by the US Fed. Investors now fear that the Fed will raise rates later this month and hold them at high levels for longer than expected to bring inflation down sustainably.

Sensex opened at 65,559.41 against the previous closing price of 65,785.64 and reached its new all-time high of 65,898.98, but soon dipped into the red, dropping 610 points to the day’s low of 65,175.74.

The 30-stock index closed down 505 points, or 0.77 percent, at 65,280.45 while the Nifty fell 166 points, or 0.85 percent, to close at 19,331.80. Nifty also reached its new all-time high of 19,523.60 in intraday trading today.

The domestic market started the week on a positive note, while negative global signals are disturbing towards the end of the week, analysts said.

Preliminary corporate data from banks, automakers and real estate companies bolstered investor confidence, while FIIs provided additional support for the domestic market. Heightened trade tensions between the US and China, along with uncertainties from the aggressive FOMC minutes, tested the risk appetite of global investors,” said Vinod Nair, Head of Research at Geojit Financial Services.

Market participants eagerly await key data points such as domestic and US inflation data for further insight into the sustainability of the market trend. Given the elevated market valuation, the profit booking is visible at the top end of the rally,” Nair added.

Updated: July 09, 2023, 9:38 AM IST