MTNL tanks on heavy volumes

A combined 57.66 million shares representing 9.15% of total equity of the company have changed hands on the counter so far

Mahanagar Telephone Nigam Limited (MTNL) has tanked 16% to Rs 32.45 on back of heavy volumes as the stock will be out from the National Stock Exchange derivative segment.

As many as a combined 57.66 million shares representing 9.15% of total equity of the company have already changed hands on the counter so far against an average sub 8 million shares that were traded daily in past two weeks.

Along with MTNL, 51 stocks will be excluded from the NSE futures and options (F&O) segment with effect from October 26, 2012. It means that these stocks will not be available for trading in F&O after expiry of August, September and October contracts.

 

"The existing unexpired contracts of these stocks of expiry months August 2012, September 2012 and October 2012 would continue to be available for trading till their respective expiry and new strikes would also be introduced in the existing contract months," the NSE had said in its circular dated July 24.

Once excluded, these stocks will attract the circuit filter, which means their share price movement will be limited by the exchanges. However, if they are part of an index in the derivative segment, these stocks will not be acted upon by the circuit filter.

Hindustan Construction Company, BF Utilities, Sterlite Technologies and Orchid Chemicals and Pharmaceuticals and Ruchi Soya Industries are down between 3-5% on the NSE.