Shares of six companies including Tata Tech, Patanjali Foods, that got introduced into NSE futures and options (F&O) segment from March series fell up to 11% on February 28.
At 11:25 am on February 28, Patanjali Foods shares were trading 11.5% lower at Rs 1,604 apiece. Shares of Tata Technologies and IREDA were trading 5% lower and 7% lower at Rs 679 and Rs 154.5 apiece, respectively.
Shares of Amara Raja Energy & Mobility Ltd were quoting nearly 1% lower at Rs 990 apiece.
Meanwhile, shares of Titagarh Rail Systems were trading nearly 5% lower at Rs 707 apiece and those of IIFL Finance were trading nearly 3% lower at Rs 307.6 apiece.
Derivatives trading enables participants to speculate the prices of underlying assets without actually owning them in their portfolios.
16 stocks have been excluded from NSE F&O series effective February 28. These are Abbott, Atul Limited, Bata India, Canfin Home, Coromandel, City Union Bank, GNFC, Gujarat Gas, Indiamart, IPCA Labs, Lal Pathlabs, Metropolis Healthcare, Navin Fluorine, PVR Inox, Sun TV, United Breweries.
Individual traders in the F&O market suffered a staggering Rs 1.8 lakh crore in aggregate losses over the past three fiscal years, with nearly 93% of more than 1 crore investors, or nine out of 10 traders, incurring average losses of Rs 2 lakh each, according to a Securities and Exchange Board of India (SEBI) analysis in September 2024.
Notably, the top 3.5% of loss-makers -- about 4 lakh traders -- suffered an average loss of Rs 28 lakh each over the three years from FY22 to FY24, inclusive of transaction costs.
Only 1% of the individual traders managed to earn profits exceeding Rs 1 lakh, after adjusting for transaction costs.
This assumes significance as an earlier study published in January 2023 by the capital market watchdog showed that 89% of individual equity F&O traders lost money in FY22.
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