1 day Ago
From today, 45 new stocks will be available in the NSE's futures and options (F&O) segment. The list includes , Jio Financial Services Ltd (JFS), Adani Energy Solutions Ltd, One97 Communications Ltd ( ), Zomato Ltd and . Bank of India, FSN E-Commerce Ventures (Nykaa), Angel One, CESC, Central Depository Services (India), Adani Total Gas are some other stocks being added to the F&O segment.
Lots of stock specific actions are likely starting today in response to the inclusion of 45 new stocks to the F&O list, said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services. The debut of 45 new F&O entrants promises plenty of excitement, said Nuvama Institutional Equities in note. "Zomato, Paytm, and Prestige look primed for long-side positioning, while Supreme Industries, DMart, and Varun Beverages could be compelling funding shorts.
In terms of derivative positioning, the long bias leans towards HDFC Bank, Siemens, Polycab, and NMDC, while the short bias points to L&T and Cummins," Nuvama said in its F&O rollover report. Other stocks added to the F&O list included CG Power, Cyient, Delhivery, Avenue Supermarts, HFCL, Hudco, Indian Bank, IRB Infra, IRFC, Jindal Stainless, JSW Energy, Kalyan Jewellers India, KEI Industries, KPIT Technologies, Life Insurance Corporation of India (LIC), NCC, NHPC, Oil India, PB Fintech, SJVN and more. Computer Age Management Services (CAMS), Poonawalla Fincorp, Prestige Estate Projects, Sona BLW Precision, Supreme Industries, Tata Elxsi, Tube Investments of India, Union Bank of India, Macrotech Developers, Max Healthcare and Varun Beverages have also been included to the list.
Over the past couple of years, there was a lot of buzz around the need to revamp the methodology for F&O stocks. The call for adding more F&O stocks with robust liquidity had grown louder, while the need to weed out underperforming names with poor liquidity has become increasingly apparent, analysts noted. To address this, SEBI had been actively engaging in discussions over the past six to nine months.
After gathering input from market participants, SEBI officially rolled out the new methodology on August 30. SEBI has revised the thresholds for stocks entering or exiting the F&O segment by revising the criteria.The Median Quarter Sigma Order Size (MQSOS) requirement over the last six months has been increased from Rs 25 lakh to Rs 75 lakh on a rolling basis.
Likewise, the Market Wide Position Limit (MWPL) has been raised from Rs 500 crore to Rs 1,500 crore. The regulator also stipulates that the Average Daily Value (ADV) over the last six months must not fall below Rs 35 crore, compared to the previous threshold of Rs 10 crore. Additionally, a PSF Framework will be used to evaluate the exit of stocks.
While PSB criteria exclusion review will not happen sooner than March 2025. Thus, exclusion based on this criteria will at least take several months, Nuvama noted earlier..
