Shares in Equitas Holdings, Reliance Defence and Engineering, Capital First, Infibeam, Muthoot Finance and 10 others were in focus on Friday, after they were included in the National Stock Exchange’s derivatives or F&O (futures and options) segment. Most of these stocks were trading in the positive zone with Reliance Defence gaining 4-5 per cent in morning deals. The other stocks included in the F&O segment included InterGlobe Aviation, PVR, Dalmia Bharat, Equitas Holdings, Ujjivan Financial Services, Suzlon Energy, Indian Bank, Piramal Enterprises and Escorts rallied between 1 and 4 per cent each.
Analysts say the entry in the F&O segment will boost liquidity in these stocks on the back of higher trading interest.
A K Prabhakar, head-research at IDBI Capital Markets, told NDTV Profit the inclusion in the F&O segment will lead to very high interest in some of these stocks such as Suzlon. Liquidity and delivery volume in these stocks will increase, he said. “Participation will increase in these stocks which is very important… Arbitrage funds will find these stocks attractive where in they may buy in cash and sell in futures contracts,” he added.
The National Stock Exchange or NSE had in a circular dated March 22 announced approval of Sebi on inclusion of these 15 securities into the F&O segment and said that the stocks would be available for trading in the segment w.e.f. March 31, 2017.
At 10 am, Reliance Defence was up 5.2 per cent, InterGlobe Aviation was up 3.4 per cent, Piramal Enterprises rose 2 per cent, Equitas Holdings advanced 3.5 per cent, Capital First jumped 4.3 per cent, Muthoot Finance gained 4 per cent while Infibeam was trading with a loss of 4.3 per cent.
“I feel if those things start to happen, the stocks with good fundamentals will start to outperform…These stocks can see 5-8 per cent returns this month,” Mr Prabhakar added