Six Stocks to Enter F&O Segment from April 1, 2026 as NSE Expands Derivatives Market

The National Stock Exchange of India (NSE) will add six new stocks to its futures and options (F&O) segment starting April 1, 2026, aiming to expand the derivatives market and improve liquidity.

The stocks to be included are Adani Power, Cochin Shipyard, Hyundai Motor India, Motilal Oswal Financial Services, Nippon Life India Asset Management, and Vishal Mega Mart. These companies will become available for derivatives trading from the beginning of the new financial year.

The exchange said the market lot size and strike price schemes for these stocks will be announced on March 30, 2026. The quantity freeze limits will be specified in the contract file when trading begins on April 1.

Among the newly added stocks, Adani Power trades at a price-to-earnings (P/E) ratio of 23.4 with a market capitalisation of around Rs 2,68,057 crore. Cochin Shipyard has a P/E ratio of 54.4 and a market capitalisation of about Rs 39,207 crore. Hyundai Motor India trades at a P/E ratio of 30 with a market capitalisation of Rs 1,70,475 crore.

Motilal Oswal Financial Services trades at a P/E ratio of 21.1 and has a market capitalisation of roughly Rs 42,633 crore. Nippon Life India Asset Management has a P/E ratio of 38.8 and a market capitalisation of about Rs 54,954 crore, supported by strong financial performance and a zero-debt balance sheet. Retail chain Vishal Mega Mart carries the highest valuation among the six, trading at a P/E ratio of 65.4 with a market capitalisation of around Rs 51,404 crore.

The inclusion of these stocks is part of NSE’s broader effort to deepen liquidity in the derivatives market and offer more instruments for hedging and trading.

However, derivatives trading carries significant risk for retail investors. A study by the Securities and Exchange Board of India (Sebi) found that more than 90 per cent of individual traders in the F&O market incurred losses in FY25. The report showed that total net losses of individual traders rose 41 per cent to Rs 1,05,603 crore in FY25 from Rs 74,812 crore in FY24.

To strengthen investor protection, Sebi has introduced measures such as rationalisation of weekly derivatives contracts, higher margin requirements, larger contract sizes, and stricter monitoring of Intraday position limits.

Meanwhile, in the Union Budget for FY27 presented by Nirmala Sitharaman, the government proposed increasing the Securities Transaction Tax (STT) on derivatives. STT on futures contracts is proposed to rise from 0.02 per cent to 0.05 per cent, while the tax on options premium may increase from 0.1 per cent to 0.15 per cent. The tax on the exercise of options contracts is also proposed to increase from 0.125 per cent to 0.15 per cent, effective April 1, 2026.

While the addition of new stocks may improve liquidity and hedging opportunities, higher transaction taxes could affect trading activity in the derivatives segment.

Disclaimer: The article is for informational purposes only and not investment advice.