Business Standard

NSE slashes lot sizes of 143 stocks; F&O volumes to rise

BS Reporter  |  Mumbai 

In a move that may give relief to retail participants in the market, the National Stock Exchange (NSE) has reduced the lot sizes for derivative contracts of 143 stocks. The move came after a nearly two-fold rise in stock prices of many companies in the past couple of months.

The lot-size reduction will raise volumes in the futures and options (F&O) segment as the cost of trading in securities concerned will come down significantly.

In February, the exchange had increased the lot sizes of 243 stocks, which had caused liquidity concerns in the derivatives segment as more margin was required for trading. The current revision was made to meet the previously set value of each contract at Rs 2 lakh.

The lot sizes of 19 stocks — including GVK Power, Jaiprakash Associates, LIC Housing Finance, Mahindra & Mahindra, Aurobindo Pharma, Bajaj Auto, Bajaj Hindusthan, Balrampur Chini, Dish TV, Financial Technologies, GMR Infrastructure, Maruti Suzuki, Nagarjuna Fertilizer and Steel Authority of India (SAIL) -- were reduced to one-fourth as their current underlying values have gone up to over Rs 8 lakh.

Similarly, the lot sizes of 122 stocks were halved after their underlying values crossed the Rs 4 lakh-mark. These stocks include Adlabs Films, Allahabad Bank, Alstom Projects India, Andhra Bank, Ashok Leyland, Asian Paints, Associated Cement, Axis Bank, Bank of Baroda, Bharat Earth Movers, Bharat Forge and Bhel.

These revisions will take effect from June 26.

RECOMMENDED FOR YOU

NSE slashes lot sizes of 143 stocks; F&O volumes to rise

In a move that may give relief to retail participants in the market, the National Stock Exchange (NSE) has reduced the lot sizes for derivative contracts of 143 stocks. The move came after a nearly two-fold rise in stock prices of many companies in the past couple of months.

In a move that may give relief to retail participants in the market, the National Stock Exchange (NSE) has reduced the lot sizes for derivative contracts of 143 stocks. The move came after a nearly two-fold rise in stock prices of many companies in the past couple of months.

The lot-size reduction will raise volumes in the futures and options (F&O) segment as the cost of trading in securities concerned will come down significantly.

In February, the exchange had increased the lot sizes of 243 stocks, which had caused liquidity concerns in the derivatives segment as more margin was required for trading. The current revision was made to meet the previously set value of each contract at Rs 2 lakh.

The lot sizes of 19 stocks — including GVK Power, Jaiprakash Associates, LIC Housing Finance, Mahindra & Mahindra, Aurobindo Pharma, Bajaj Auto, Bajaj Hindusthan, Balrampur Chini, Dish TV, Financial Technologies, GMR Infrastructure, Maruti Suzuki, Nagarjuna Fertilizer and Steel Authority of India (SAIL) -- were reduced to one-fourth as their current underlying values have gone up to over Rs 8 lakh.

Similarly, the lot sizes of 122 stocks were halved after their underlying values crossed the Rs 4 lakh-mark. These stocks include Adlabs Films, Allahabad Bank, Alstom Projects India, Andhra Bank, Ashok Leyland, Asian Paints, Associated Cement, Axis Bank, Bank of Baroda, Bharat Earth Movers, Bharat Forge and Bhel.

These revisions will take effect from June 26.

image

LIVE MARKET

BSE 25201.90

-562.88 (-2.18 %)

NSE 7655.05

-167.95 (-2.15%)

Widgets Magazine

STOCK WATCH

Company Price() Chg(%)
Ent.Network 655.60 7.67
Goldline Intl. 194.00 4.81
Jyothy Lab. 320.80 4.73
PMC Fincorp 1.63 4.49
Sun TV Network 387.30 4.00
> More on BSE Gainers
Company Price() Chg(%)
Ent.Network 663.05 8.11
Amtek Auto 32.80 4.13
Sun TV Network 387.65 4.04
Jyothy Lab. 319.90 3.98
La Opala RG 589.70 3.91
> More on NSE Gainers
Company Price() Chg(%)
NCC 58.15 -12.23
Financial Tech. 99.95 -11.55
Welspun Corp 100.55 -8.76
Lycos Internet 23.50 -7.84
H D I L 57.00 -7.77
> More on BSE Gainers
Company Price() Chg(%)
NCC 58.10 -12.04
Financial Tech. 100.10 -11.14
Welspun Corp 100.20 -9.36
Himatsing. Seide 178.65 -7.86
H D I L 57.00 -7.62
> More on NSE Gainers
Widgets Magazine
Widgets Magazine
Widgets Magazine

Derivatives

Index
Instrument Type
Expiry Date
Option Type
Strike Price