SBI Card, Laurus Labs, Chambal Fert rally up to 10% on F&O inclusion boost

Firstsource Solutions, Whirlpool of India, Birla Soft and Gujarat State Petronet will also be included in F&O segment w.e.f. October 29, 2021

Shares of Chambal Fertilisers & Chemicals, Atul, Firstsource Solutions (FSL), Whirlpool of India and four others were in demand on the bourses on Thursday after the exchange announced inclusion of these stocks in the futures & options (F&O) or derivative segment from October 29, 2021. These shares rallied by up to 10 per cent on the National Stock Exchange (NSE) in the intra-day trade today.

SBI Cards and Payment Services (SBI Card), Laurus Labs, Birla Soft and Gujarat State Petronet, meanwhile, advanced between 3.5 per cent and 5 per cent on the NSE. In comparison, Nifty50 index was up 0.92 per cent at 17,808 points at 11:33 am.

"Members are hereby notified that the futures and options contracts on following 8 additional securities would be available for trading w.e.f. October 29, 2021, subject to fulfillment of eligibility criteria of Quarter sigma computation cycle of October 2021," the NSE circular said. CLICK HERE FOR CIRCULAR

Of these eight stocks, Chambal Fertilizers & Chemicals (up 10 per cent at Rs 377) and Atul (up 7 per cent at Rs 10,500) hit their respective record highs on the NSE in the intra-day trade today.

No price bands are applicable on scrips on which derivative products are available. However, in order to prevent members from entering orders at non-genuine prices in such securities, the Exchanges have fixed operating range of 10 per cent. When the price approaches these levels, the limits are relaxed further. There is currently a cooling period of 15 minutes before new limits are added for F&O stocks. The move expected to boost participation as investors and institutions can hedge underlying positions in the stock.