Jio Financial Services shares experienced a surge of over 6% following their inclusion in the Futures and Options (F&O) segment. The National Stock Exchange (NSE) includes only highly liquid stocks in the F&O segment, ensuring they meet a minimum average daily turnover and display stable price movements. This selection process helps foster a more secure environment for derivatives trading.
The inclusion of Jio Financial Services in the F&O segment reflects its strong liquidity and stable price movements, which are critical factors for this selection. The National Stock Exchange (NSE) has announced that it will introduce futures and options contracts on 45 additional stocks, starting November 29. This new development aims to broaden the range of investment opportunities available to traders.
The new list of stocks includes major companies such as Life Insurance Corporation (LIC), Jio Financial Services, Adani Energy Solutions, Adani Green Energy, Nykaa, Paytm, YES Bank, and Zomato. The inclusion of these companies is based on the stock selection criteria as prescribed by the Securities and Exchange Board of India (SEBI). “Members are advised to note that based on the stock selection criteria as prescribed by SEBI vide circular no.
SEBI/HO/MRD/MRD-PoD-2/P/CIR/2024/116 dated August 30, 2024, and approval received from SEBI, members are hereby notified that the futures and options contracts on the following 45 additional securities would be available for trading,” the NSE said in a circular. Further details regarding the market lot, scheme of strikes, and quantity freeze limit of the securities will be informed to members on November 28 through a separate circular, NSE added. Currently, there are 178 stocks available for F&O trading on NSE.
The introduction of these 45 additional stocks will expand the range of financial instruments available for traders and investors, thereby enhancing market liquidity and depth.
Jio Financial joins F&O trading
The NSE’s move aligns with its ongoing efforts to diversify and expand the market offerings, allowing for more sophisticated trading strategies and risk management tools.
Shares of Jio Financial Services Ltd and Zomato Ltd climbed up to 4% in Thursday’s trade, as the two stocks are seen as major contenders to be included in the Nifty index in the March 2025 rejig. Both companies are expected to attract significant passive inflows if added to the index, with Zomato projected to see $661 million and Jio Financial anticipated to garner $403 million. Jio Financial Services (JFS) shares climbed 4.37% to hit a high of Rs 312.50 on BSE, while Zomato shares advanced 2.8% to reach Rs 265.80.
These movements are largely driven by investor speculation ahead of the official announcement, which is likely to come in the second half of February 2025, according to Abhilash Pagaria of Nuvama Alternative & Quantitative Research. In a trader-friendly move, the National Stock Exchange (NSE) has officially announced a major shake-up with SEBI approving 45 new stocks for derivatives trading starting from November 29, 2024. Among these, Jio Financial and Zomato are expected to shine, with potential inclusion in the Nifty 50 during the March 2025 review.
During this period, other significant shifts are expected. BPCL Ltd and Eicher Motors Ltd may exit the Nifty index, potentially leading to outflows of $263 million and $246 million respectively. Additionally, Hero MotoCorp Ltd and Britannia Industries Ltd are also on the verge of exclusion, which could see outflows of $244 million and $248 million respectively.
Despite D-Mart’s sizable market capitalisation, its free float still does not meet the criteria for Nifty inclusion, according to Nuvama’s Pagaria. As these rising stars step up, market watchers are keenly observing the evolving dynamics of India’s premier stock index. Eicher Motors shares surged 7% following a strong set of Q2 results, while BPCL shares declined by half a percent.
