IndusInd Bank, BSE, SAIL Among Five Stocks in NSE’s F&O Ban List Today

Shares of IndusInd Bank Ltd, SAIL Ltd, BSE Ltd, Manappuram Finance Ltd, and Hindustan Copper Ltd have been placed under the Futures & Options (F&O) ban by the National Stock Exchange (NSE) for Monday, March 17. The ban was imposed after these stocks breached 95% of the market-wide position limit (MWPL), restricting traders from taking new derivative positions until their open interest falls below 80% of MWPL.

IndusInd Bank Plunges 26% Amid Accounting Concerns

IndusInd Bank, one of the worst-hit stocks, lost 26% of its market capitalisation in the last five sessions following concerns over an accounting discrepancy and regulatory uncertainty over its leadership. The Reserve Bank of India (RBI) recently approved only a one-year extension for the bank’s CEO, despite a request for a three-year tenure—a move that added to investor uncertainty.

The NSE also placed IndusInd Bank under Additional Surveillance Measure (ASM) – Stage 1, a short-term monitoring mechanism to curb excessive volatility. Despite the sharp sell-off, the RBI reassured stakeholders that the bank remains financially strong, with a Capital Adequacy Ratio (CAR) of 16.46%, Provision Coverage Ratio (PCR) of 70.20%, and a Liquidity Coverage Ratio (LCR) of 113% as of March 9, 2025—well above the regulatory threshold of 100%.

The central bank directed IndusInd Bank’s management to implement corrective measures by Q4 FY25, emphasizing that depositors need not react to speculative concerns at this stage.

BSE Shares Hit by Derivatives Expiry War

BSE Ltd has also witnessed heavy selling pressure, losing 5% in the last five sessions and shedding 25% of its value over the past month. The slump follows NSE’s recent decision to shift its F&O expiry to Monday, which directly competes with BSE’s expiry day. Analysts at Nuvama Institutional Equities believe this strategic shift could impact BSE’s trading volumes, benefiting NSE, which previously held an 83.6% market share in derivatives trading as of December 2024.

SAIL & Other Metal Stocks Under Pressure

Shares of Steel Authority of India Ltd (SAIL) are also in focus, having declined 5% over the last five sessions. In comparison, other steel stocks, including Tata Steel (-1.38%), JSW Steel (-1.56%), and Jindal Steel (-3.23%), have shown comparatively lower declines.

Meanwhile, Manappuram Finance Ltd saw a modest decline of 0.83% over the past five sessions, while Hindustan Copper Ltd also faced sell-off pressure, pushing it into the F&O ban list.

Market Outlook & Lifting of Ban

As per NSE guidelines, these stocks will remain under the F&O ban until their open interest falls below 80% of MWPL across all exchanges. Traders can only square off existing positions but cannot open fresh trades until the restriction is lifted.

The broader market sentiment remains cautious, with investors monitoring global cues, U.S. Federal Reserve’s policy stance, and the Indian economy’s inflation outlook, which could influence stock movements in the coming weeks.