The NSE, on May 18 said that it will admit for trading on its futures and options (F&O) segment the derivative contracts in these five companies beginning May 26.
Among the individual stocks, RBL Bank has dipped 7.5% to Rs 505 on the NSE in intra-day trade. At 10:43 am; it was trading 4% lower at Rs 523 as compared to 0.36% rise in the Nifty 50 index. Ramco Cements too, down 1.5% at Rs 689, after hitting low of Rs 675 in intra-day trade.
However, HCC (up 2.3% at Rs 42.40), Nalco (1.6% at Rs 67.70) and Kajaria Ceramics (1.4% at Rs 706) were up in the range of 1% to 2% on NSE.
Equity derivative is a class of derivatives whose value is at least partly derived from one or more underlying equity securities. F&O are by far the most common equity derivatives.
Typically, stocks that enter the F&O segment gain ground due to absence of circuit filters and increase in institutional participation due to improved liquidity.