29 Nov , 2024 By : Debdeep Gupta
Shares of Computer Age Management Systems (CAMS) and Paytm parent One97 Communications saw strong buying action which lifted the two to their 52-week highs on November 29. The surge in these stocks was triggered by their inclusion in the National Stock Exchange’s futures and options (F&O) segment, starting today.
Shares of Paytm and CAMS rose 3 percent each and hit 52-week highs of Rs 952 and Rs 5,098.80, respectively. While CAMS shares are up 89 percent year-to-date, Paytm shares have gained 47 percent.
An inclusion in the F&O segment will likely boost liquidity in these counters alongside opening opportunities for investors to both hedge as well as trade speculatively in the stock. With the inclusion, Paytm and CAMS also joined the list of 223 stocks that have a presence in the F&O segment.
In addition to increased liquidity, an inclusion in the F&O segment is also a prerequisite for any stock to qualify for entry into the benchmark Nifty 50 index.
NSE reviews its indices twice a year and the availability of stock in the F&O category is a key criterion to be considered for inclusion. Stocks are added to the F&O segment after showcasing increased liquidity, largely in terms of trading volumes and a market capitalization that's big enough to enter the derivatives segment.
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