Sintex spurts on F&O inclusion
Sintex is the top gainer on the BSE right since the opening bell. Intra day, the stock price rose over 9% at Rs.82.85 and it is now at Rs.80 levels, up 6.5%. Volumes are robust.
No fundamental changes in the company but it is the inclusion of Sintex into the NSE futures & options (F&O) contracts from 1stJuly 2016 that has led to this sharp rise in the stock price.
NSE has said that other details like market lot, scheme of strikes and quantity freeze limit will be notified on 30th June through a separate circular.
This is a typical behavior of any stock which is to be included in the F&O contracts as for the traders, it means no circuit filters and we also see that inclusion leads to higher participation by institutional investors as liquidity goes up.