NSE Adds 9 New Stocks to Futures and Options Segment
NSE F&O Stocks: Indian investors received significant news as the National Stock Exchange (NSE) added nine new stocks to its Futures and Options (F&O) segment. This decision opens new trading opportunities for these companies' shares. Let's explore which companies have been included, their lot sizes, and the potential impact on investors.
Nine New Stocks Added to the F&O Segment
The National Stock Exchange has included Bharat Dynamics Limited (BDL), Rail Vikas Nigam Limited (RVNL), and other companies' shares in the F&O segment. Specific lot sizes have been determined for each stock. Inclusion in the F&O segment means trading in these companies' shares will now be possible through futures and options contracts, presenting new opportunities for stock market traders.
The complete list of new stocks and their lot sizes is as follows:
- Bharat Dynamics Limited (BDL) – Lot size 325
- Blue Star Limited (BLUESTARCO) – Lot size 325
- Fortis Healthcare Limited (FORTIS) – Lot size 775
- Kaynes Technology India Limited (KAYNES) – Lot size 100
- Mankind Pharma Limited (MANKIND) – Lot size 225
- Mazagon Dock Shipbuilders Limited (MAZDOCK) – Lot size 175
- Piramal Pharma Limited (PPLPHARMA) – Lot size 2500
- Rail Vikas Nigam Limited (RVNL) – Lot size 1375
- Uno Minda Limited (UNOMINDA) – Lot size 550
What Does Inclusion in the F&O Segment Mean?
F&O, or Futures and Options, is the derivatives segment of the stock market. Trading in this segment occurs through contracts based on underlying stocks, indices, or commodities. This segment primarily involves two types of contracts:
Futures Contract – This involves an agreement to buy or sell a share at a predetermined price on a future date.
Options Contract – This grants the investor the right (but not the obligation) to buy or sell a share at a predetermined price on a specific date.
Trading in the F&O segment can be risky. While profits are possible, the risk of loss is also substantial. New investors should proceed with caution.
SEBI's Warning and Risks in F&O
The Securities and Exchange Board of India (SEBI) has issued warnings regarding F&O trading. According to SEBI reports, 90% of investors engaging in F&O trading experience losses. A study between 2022 and 2024 revealed that most traders incurred an average loss of ₹2 lakh, with total losses exceeding ₹1.8 lakh crore. These figures highlight the significant risk involved in F&O trading without adequate knowledge and experience.
Why is F&O Trading Popular?
F&O trading's popularity stems from several factors. It allows investors to execute large trades with smaller capital, leveraging financial resources. Additionally, it serves as a hedging tool. For example, if an investor already holds shares in a company, they can use F&O to protect their portfolio against market downturns.
However, it's crucial to remember that F&O trading can resemble speculation. Many investors jump in without planning, driven by the desire for quick profits, leading to losses.
Advice for Investors: Approach F&O Trading Thoughtfully
If you're interested in F&O trading, thoroughly understand the market first. Trading based on hearsay without research can lead to losses. Before trading, consider:
- Understand the fundamentals, business model, and growth potential of the company whose shares you intend to trade in the F&O segment.
- Use tools like stop-loss orders to manage your risk.
- Start with small transactions and gradually gain experience.
- Don't view F&O as a shortcut to riches; it's a hedging tool that should be used with a proper strategy.
Keep an Eye on Stocks Like Bharat Dynamics and RVNL
Bharat Dynamics and Rail Vikas Nigam are now included in the F&O segment. These companies play significant roles in their respective industries – Bharat Dynamics in defense and RVNL in railway infrastructure. Both show long-term potential. If you plan to engage in F&O trading, monitoring the movement and volume of these companies' shares is essential.
