Welspun Corp slips on F&O exclusion talks

Shares plunge 3%, volumes thin

Welspun Corp has slumped in early trades this morning on news that the NSE will exclude the stock from futures & options trading on the bourses.

The National Stock Exchange said it will exclude leading pipe manufacturer Welspun Corp from its derivative segment. In a circular, the exchange said trading in derivative contracts for the security would not be available with effect from April 26, 2013.

"However, the existing unexpired contracts of expiry months February, March and April would continue to be available for trading till their respective expiry and new strikes would also be introduced in the existing contract months," it added.

In a separate circular, NSE said that Welspun Corp would not be available for transactions in Securities and Lending Borrowing (SLBs) schemes,  with effect from April 26, 2013.

The stock opened at Rs 90.50 and shed some weight to touch a low of Rs 88.55. It is now down over 3% at Rs 88.75. Around 1,89,000 shares have been traded on the BSE so far, as against a two week average of 3,41,000 shares traded on a daily average basis in the last two weeks.