Patanjali Foods, Tata Technologies, Titagarh Rail Systems, and two other stocks decline up to 13% following their inclusion in the NSE F&O segment on Friday. A total of five stocks were introduced into the NSE Futures and Options (F&O) segment as part of the March derivatives series, which commenced on February 28. However, all five newly added stocks experienced a significant sell-off on their first day in the segment.
Patanjali Foods witnessed a sharp decline of 13.4%, while Indian Renewable Energy Development Agency (IREDA) shares fell by 8.95%. Tata Technologies also recorded a decline of 7.15%, reaching a 52-week low of ₹664.60 per share on the BSE.
Titagarh Rail Systems and IIFL Finance saw their stock prices drop by 6.15% and 4.4%, respectively.
The inclusion of stocks in the F&O segment allows traders to hedge their positions and engage in speculative trading based on anticipated price movements. The segment consists of derivative contracts that require the buyer to purchase, or the seller to sell, the underlying asset at a predetermined price on a specified future date. This often results in heightened volatility as market participants respond 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
The Indian stock market crashed on Friday, marking a weak start to the March F&O series. The benchmark BSE Sensex plummeted over 1,300 points, while the NSE Nifty 50 tumbled more than 400 points, approaching the 22,100 level.
February proved to be a challenging month for the markets, with the Nifty 50 declining by 5.5%, extending its losing streak for the fifth consecutive month—a rare occurrence last witnessed in 1996.
Broader markets also faced a severe downturn on February 28, as the Nifty Midcap 100 and Nifty Smallcap 100 indices fell by 3% each. All the sectoral indices were trading with heavy losses, with the IT, tech, auto, and telecom receiving the maximum beating in today’s bloodbath on Dalal Street.
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