How will RBI's tough stance shape the fate of cryptocurrencies? How did Falguni Nayar become India's most successful entrepreneur? What is F&O, and how does it differ from equity trading? Answers here
The peak margin norms have been implemented in phases since December 2020
The margin requirement for the futures segment has risen substantially after the introduction of peak margin norms last year
A whopping increase in FPI inflows also boosted risk appetite, traders said. Foreign institutional investors purchased shares worth a net Rs 28,739.17 crore on Wednesday, according to exchange data
Retail participation in the F&O segment - especially that for options writers on expiry days - has already been impacted owing to these norms, which became effective from December 1
The broader markets, however, bucked the trend and ended higher today. The S&P BSE MidCap and SmallCap indices added 0.7 per cent and 0.4 per cent, respectively at close
Retail participation slides 15-20% on weekly expiry days
Primary trend of the Bharat Forge stock is positive where its price is trading above all important moving averages
The cash market turnover stood at Rs 66,365 crore, against the daily average turnover of Rs 73,560 crore for November
However, Maruti, ONGC, IndusInd Bank, Tech Mahindra and Infosys dipped up to 0.87 per cent
The S&P BSE Sensex plunged 1,172 points in the intra-day deals on the BSE, while Nifty50 index tanked 342 points on the NSE
Increase in direct market participation has bolstered critical benchmarks in recent times; key financials don't offer comfort
According to an analysis by ICICI Direct, about a dozen stocks currently meet the inclusion criteria for trading in the derivatives segment
In separate circulars, the exchanges said futures and options (F&O) contracts will not be available for trading in the securities of these three companies with effect from August 28, 2020
Post inclusion, stocks under the F&O segment will now be 143, up from 140, with effect from February 28, when the March series begins
Among individual stocks, HDFC Life Insurance Company, Bandhan Bank, and Info Edge will be in focus today as they are set to be added in the Futures & Options segment effective February 28
Strategies using opposing option contracts to see lower margin
The Securities and Exchange Board of India had appointed a Risk Management Review Committee to look at the margin collection system in India
For now, brokerages are bracing for a dip in trading volumes, given that the curbs on leverage trades - effective from January - are likely to hurt transactions in the F&O segment
Check out the F&O trends in select stocks with Chetan Jain, Manager -Derivatives Desk, Anand Rathi