Patanjali Foods, Tata Technologies, Titagarh Rail Systems and two other stocks fell 13% after they included it in the NSE F&O space on Friday. As part of the March derivatives series, a total of five stocks were introduced into the NSE Futures and Options (F&O) segment, which began on February 28. However, all five newly added stocks had a big sell-off on the first day of the segment.
Patanjali Foods witnessed a sharp drop of 13.4%, while the Indian Renewable Energy Development Agency (IREDA) shares fell by 8.95%. Tata Technology’s record also fell 7.15% to a 52-week low ₹BSE is 664.60 per share.
Shares of Titagarh Rail Systems and IIFL Finance fell 6.15% and 4.4% respectively.
Included in the F&O segment allows traders to hedge their positions and conduct speculative trading based on expected price changes. The market segment includes derivative contracts requiring the buyer to purchase or seller to sell the underlying assets for a pre-order price on a specified future date. This often leads to volatility growth as market participants react to evolving expectations and news.
Conversely, 16 stocks have been excluded from the NSE F&O segment, effective February 28. These include Abbott India, Atul Ltd, Bata India, Canfin Homes, Coromandel International, City Union Bank, GNFC, Gujarat Gas, IndiaMart InterMesh, IPCA Laboratories, Dr. Lal Pathlabs, Metropolis Healthcare, Navin Fluorine International, PVR Inox, Sun TV Network, and United Breweries.
Stock market crash
Indian stock market collapsed on Friday, marking a weaker start to the F&O series in March. The benchmark BSE Sensex fell 1,300 points, while the NSE Nifty 50 fell more than 400 points, close to the 22,100 level.
February proved to be a challenging month for the market, with the Nifty 50 falling 5.5%, extending its fifth straight record of losing streak, a rare occurrence that was the last witness in 1996.
On February 28, the broader market also faced a severe recession as the Nifty Midcap 100 and Nifty SmallCap 100 indexes fell by 3%, respectively. All sector indexes suffered huge losses, with IT, Tech, Auto and Telecom taking the biggest hit in Bloodbath on Dalal Street today.
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