Beginning on Friday, November 29, 2024, the National Stock Exchange will provide F&O contracts on 45 new equities.
The National stock Exchange circular listed Avenue Supermarts (DMart), Jio Financial Services, and Zomato as some of the prominent newcomers. Following approval by the Securities and Exchange Board of India (SEBI), which oversees the capital markets, the new additions were made public.
In its official statement on November 13, the NSE stated that “Members are hereby notified that the futures and options contracts on 45 additional securities would be available for trading w.e.f. November 29, 2024.” Additionally, the NSE stated that on November 28, a separate official circular would be sent to members informing them of the market lot, strike plan, and quantity freeze limit of the securities.
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NSE introduces F&O contracts on the following 45 new stocks
The National Stock Exchange (NSE): According to NSE, the 45 new securities which will be introduced in F&O contracts are as follows:
- Adani Green Energy Limited, Angel One Limited, Apollo Tubes Limited, Adani Total Gas Limited, Bank of India, BSE Limited, Computer Age Management Services Limited, Central Depository Services (India) Limited, CESC Limited, CG Power and Industrial Solutions Limited, Cyient Limited, Delhivery Limited, Avenue Supermarts Limited, HFCL Limited, Housing & Urban Development Corporation Limited, Indian Bank, IRB Infrastructure Developers Limited, Indian Railway Finance Corporation Limited, Jio Financial Services Limited, Jindal Stainless Limited, JSW Energy Limited, Kalyan Jewellers India Limited, KEI Industries Limited, KPIT Technologies Limited, Life Insurance Corporation of India, Macrotech Developers Limited, Max Healthcare Institute Limited, NCC Limited, NHPC Limited, FSN E-Commerce Ventures Limited (Nykaa), Oil India Limited, One 97 Communications Limited (Paytm), PB Fintech Limited (Policybazaar), Poonawalla Fincorp Limited, Prestige Estates Projects Limited, SJVN Limited, Sona BLW Precision Forgings Limited, Supreme Industries Limited, Tata Elxsi Limited, Tube Investments of India Limited, Union Bank of India, Varun Beverages Limited, Yes Bank Limited, and Zomato Limited. Source: https://www.livemint.com
Benefits of this expansion for traders
Broader Market Access with Key Sector Exposure
The 45 new F&O contracts cover a wide range of industries, including renewable energy, finance, technology, healthcare, and retail. This variety allows you to diversify your portfolio and invest in sectors that align with market trends and your personal financial goals.
| Sector | Stocks |
| Energy | Adani Green Energy, JSW Energy |
| Financial Services | LIC, Union Bank, Yes Bank, Jio Financial Services |
| Technology | Tata Elxsi, KPIT Technologies |
| Consumer Goods | Nykaa, Zomato, DMart |
| Healthcare | Max Healthcare Institute, Cyient |
Enhanced Liquidity and Trading Volume
It is anticipated that more F&O contracts will result in higher trading volumes for these securities, which will enhance liquidity. Because increased liquidity makes it simpler to enter and exit positions with little impact on the price, this is essential for active traders. Smoother, more effective transactions are ensured by increased liquidity, which advantages both short-term traders and those wishing to keep positions longer.
Advanced Hedging Opportunities for Risk Management
F&O contracts offer traders a potent hedging instrument that shields their portfolios from market fluctuations. For example, you can balance possible losses in one area with profits in another by hedging your exposure to industries like banking (Union Bank, Yes Bank) or energy (JSW Energy, Oil India). This adaptability is especially helpful when the market is unpredictable.
More Opportunities for Customized Strategies
These contracts have given traders greater freedom to employ intricate techniques including sector-focused investments, spreads, and pairs trading. This makes it possible to customize strategies according to your risk tolerance and the state of the market. For instance, balancing development potential and security can be achieved by matching stable banking companies with high-growth tech stocks.
Improved Portfolio Diversification
Investors can diversify their holdings and lower concentrated risks by having access to a greater variety of F&O contracts. With businesses in the fields of e-commerce (Nykaa, Zomato), finance (Bank of India, LIC), renewable energy (Adani Green Energy), and healthcare (Max Healthcare), I-Sec clients can build a well-rounded portfolio and guard against changes in their industry.
Important Details
On November 28, 2024, details including lot sizes, strike prices, and quantity freeze limitations will be announced, allowing traders to modify their plans in advance of the start.
On November 29, 2024, trading on these new F&O contracts will start.
For the months of December 2024, January 2025, and February 2025, these 45 securities will be traded.
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