New F&O entrants get it on the chin

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Loss Jan-09Jan-22 WWIL8640-54 Sasken318147-54 Ispat Inds6933-52 CMC1361681-50 NIIT Tech231117-49 HOEL15081-46 Aptech372206-45 KPIT Cum12973-43 Net 18 Fin495292-41 Dev Cr Bk14994-37
Ten of these stocks have hit one-year lows, including 3i Infotech, Aptech, NIIT Technologies, CMC, Biocon, Hindustan Zinc, Tech Mahindra and Sasken Communications.  Moreover, out of the 29 stocks, the market price of 20 stocks fell by over 27 per cent since January 9 compared with the 20 per cent fall in the Sensex, 25 per cent decline in the small-cap index and 26 per cent fall in the mid-cap index during the same period. The NSE added 14 stocks to the derivatives list in September and another 15 in November last year.  The F&O market is a form of forward trading in which investors enter into a transaction but defer the settlement (called expiry date of the contract) to a future date.  Wire and Wireless, Ispat Industries, Hindustan Oil Explorations, Network 18 Fincap, KPIT Cummins Infosys and Development Credit Bank, that were added to the derivatives list in November 2007, declined by more than 35 per cent. Wire and Wireless was the largest loser on the NSE, declining 54 per cent from Rs 86.20 on January 9 to Rs 39.70.  The small and medium-sized information technology (IT) stocks introduced in the last six months were hard hit in the meltdown.  Sasken Communications is the second largest loser, falling by 54 per cent to Rs 146.85 (Rs 317.50). This was followed by CMC