Hindustan Zinc surged nearly 5% intraday on March 28 before settling at Rs 461, up nearly 3%. The stock has gained 18% in March. Inox Wind climbed 2.61% on the day, taking its monthly gain beyond 8%, while PNB Housing Finance rose 1% for the month.
Historically, stocks added to the F&O segment tend to see increased liquidity and attract more institutional and retail participation. This deeper market participation often leads to higher trading volumes, improved price discovery, and potential re-rating.
Following their F&O inclusion, all three stocks saw a significant jump in trading volumes and turnover on the NSE. HZL’s trading volume surged nearly 3.8 times from an average of 15.72 lakh shares to 56 lakh shares on March 28, while turnover jumped from Rs 68.85 crore to ₹264.42 crore. Inox Wind and PNB Housing Finance also saw their trading volumes and turnover nearly double.
Among the three, HZL stands out with the highest market capitalization and is currently among India’s top 50 companies. Given its strong price momentum, market experts suggest that HZL could eventually qualify for Nifty 50 inclusion if the rally sustains.
Data suggests that stocks typically witness an extended rally post-F&O inclusion. Analysis by Ace Equity shows that stocks like Castrol India, NBCC India, Solar Industries, and Torrent Power saw gains between 27% and 136% in the months following their inclusion. If this trend holds, HZL, Inox Wind, and PNB Housing Finance could see further upside in the coming months.
ETMarkets.com
