NSE Expands Futures and Options Offerings
The National Stock Exchange (NSE) is set to broaden its derivatives portfolio with the introduction of futures and options (F&O) contracts on 45 new stocks, effective from Friday, November 29, 2024. Among the prominent additions are Zomato, Jio Financial Services, and Avenue Supermarts (DMart), according to a circular issued by National Stock Exchange. This expansion has been approved by the Securities and Exchange Board of India (SEBI), marking a significant move to enhance market participation and liquidity.
An official statement released on November 13 announced the inclusion of these securities in the derivatives segment. The market lot, strike price scheme, and quantity freeze limits for the new contracts are expected to be detailed in a follow-up circular on November 28. With these additions, investors will have more diverse opportunities for hedging and speculation.
Complete List of New Entrants
The 45 stocks entering the F&O segment reflect a wide range of industries, from energy to financial services, and consumer goods. Notable entrants include Adani Green Energy, LIC, Paytm (One 97 Communications), Nykaa (FSN E-Commerce Ventures), and Yes Bank. Other additions are Indian Bank, IRB Infrastructure, Tata Elxsi, Union Bank of India, and Max Healthcare Institute, among others.
The inclusion of such a varied mix aims to cater to both retail and institutional investors, providing more options for trading strategies. This development is expected to contribute to deeper market penetration and improved price discovery for the newly added stocks.
Market Sentiment Amid Declining Indices
On the eve of this announcement, domestic equity benchmarks Sensex and Nifty 50 experienced their sharpest declines in nearly two months. Heavy selling in IT stocks and adjustments related to the expiry of monthly derivatives contracts dragged the indices down. The National Stock Exchange Nifty 50 closed 1.49% lower at 23,914.15, while the BSE Sensex dropped 1.48% to settle at 79,043.74.
Investor wealth took a significant hit, shrinking by ₹1,50,265.63 crore to ₹4,42,98,083.42 crore. While large-cap stocks faced pressure, small- and mid-cap segments remained relatively resilient due to their limited exposure to IT firms and the absence of derivatives trading.
The introduction of 45 new F&O contracts may inject fresh dynamism into the derivatives market, providing a counterbalance to recent market weaknesses. As the trading community prepares for this development, the new additions could play a pivotal role in shaping market trends in the months ahead.
