The National Stock Exchange (NSE) has placed five stocks under its Futures & Options (F&O) ban on Monday, March 17. The affected stocks include IndusInd Bank Ltd, Steel Authority of India Ltd (SAIL), BSE Ltd, Manappuram Finance Ltd, and Hindustan Copper Ltd. These stocks exceeded 95% of the market-wide position limit (MWPL), triggering restrictions on new derivative positions until their open interest drops below 80% of MWPL.
IndusInd Bank Faces Heavy Sell-Off Amid Leadership Uncertainty
IndusInd Bank has been at the center of investor concerns, witnessing a 26% decline in market value over the past five trading sessions. The sell-off was driven by growing worries over accounting discrepancies and regulatory uncertainty regarding its leadership. The Reserve Bank of India (RBI) recently granted only a one-year extension for the bank’s CEO, despite an original request for a three-year term, which added to market volatility.
Additionally, the NSE has placed IndusInd Bank under Additional Surveillance Measure (ASM) – Stage 1, a short-term regulatory mechanism aimed at controlling excessive price fluctuations. Despite the turbulence, the RBI reassured investors about the bank’s financial stability, highlighting a Capital Adequacy Ratio (CAR) of 16.46%, a Provision Coverage Ratio (PCR) of 70.20%, and a Liquidity Coverage Ratio (LCR) of 113% as of March 9, 2025—well above regulatory requirements.
BSE Ltd Hit by Competitive Pressure
BSE Ltd has faced significant selling pressure, declining 5% over the last five sessions and 25% over the past month. The downturn follows NSE’s recent move to shift its F&O expiry day to Monday, creating direct competition with BSE’s existing schedule. Analysts believe this shift could impact BSE’s derivatives trading volume, strengthening NSE’s dominant 83.6% market share in derivatives trading as of December 2024.
SAIL and Metal Sector Stocks Under Pressure
SAIL has also seen a 5% drop in the past five sessions, as metal stocks continue to experience volatility. Other key players in the steel sector have also seen declines, including Tata Steel (-1.38%), JSW Steel (-1.56%), and Jindal Steel (-3.23%), though their losses have been more contained compared to SAIL.
Meanwhile, Manappuram Finance Ltd slipped 0.83%, and Hindustan Copper Ltd also witnessed a decline, leading to their inclusion in the F&O ban list.
When Will the Ban Be Lifted?
According to NSE rules, these stocks will remain under the F&O ban until their open interest drops below 80% of MWPL. While traders can close existing positions, fresh trades will not be permitted until the restriction is lifted.
Market Outlook
Investors are closely monitoring the global market sentiment, U.S. Federal Reserve policy decisions, and inflation trends in India, which could impact stock movements in the coming weeks. The overall sentiment remains cautious as traders await further clarity on regulatory policies and market conditions.
By keeping an eye on the NSE’s F&O ban list and broader market trends, traders can better navigate volatility and make informed decisions.
