NSE to Add Six Stocks to Futures & Options Segment from April 1, 2026

According to a circular issued by the exchange, the companies that will be included in the F&O segment are Adani Power, Cochin Shipyard, Hyundai Motor India, Motilal Oswal Financial Services, Nippon Life India Asset Management, and Vishal Mega Mart. These stocks will become available for derivatives trading starting from the beginning of the new financial year.

The exchange stated that the market lot size and strike price schemes for all six stocks will be announced on March 30, 2026. Additionally, the quantity freeze limits applicable to these contracts will be specified in the contract file, which will come into effect when trading begins on April 1.

Valuations and Market Position of the Newly Added Stocks

Among the new additions, Adani Power is trading at a price-to-earnings (P/E) ratio of 23.4 and has a market capitalisation of around ₹2,68,057 crore. 

Shipbuilder Cochin Shipyard trades at a higher P/E ratio of 54.4, with a market capitalisation of approximately ₹39,207 crore, despite experiencing recent declines in its share price.

Hyundai Motor India has a P/E ratio of 30 and commands a market capitalisation of ₹1,70,475. 

Motilal Oswal Financial Services appears relatively attractive in valuation terms, with a P/E ratio of 21.1 and a market capitalisation of about ₹42,633 crore. 

Meanwhile, Nippon Life India Asset Management trades at a P/E ratio of 38.8 and has a market capitalisation of roughly ₹54,954 crore. The company also stands out for its strong financial performance and zero-debt balance sheet.

Retail chain Vishal Mega Mart has the highest valuation among the six companies, with a P/E ratio of 65.4 and a market capitalisation of around ₹51,404 crore.

Expansion Aimed at Boosting Liquidity in Derivatives Market

The inclusion of these stocks is part of NSE’s broader effort to deepen market liquidity and expand the derivatives ecosystem. By adding more companies to the F&O segment, the exchange aims to provide traders and investors with additional instruments for hedging and speculative trading.

However, derivatives trading continues to carry significant risk, particularly for retail investors. A study conducted by the Securities and Exchange Board of India (Sebi) revealed that more than 90% of individual traders participating in the F&O market incurred losses in FY25.

The report also highlighted that the total net losses of individual traders widened sharply by 41%, increasing to ₹1,05,603 crore in FY25 compared with ₹74,812 crore in FY24. These findings have prompted regulators to introduce several measures aimed at reducing excessive speculation in the derivatives market.

Regulatory Measures and Proposed Increase in STT

To improve investor protection, Sebi has implemented multiple regulatory measures in the derivatives segment. These include rationalisation of weekly derivatives contracts, higher margin requirements, larger contract sizes, and stricter monitoring of intraday position limits.

At the same time, the government has proposed an increase in the Securities Transaction Tax (STT) on derivatives trading. In the Union Budget for FY27 presented by Nirmala Sitharaman, it was proposed that the STT on futures contracts be increased from 0.02% to 0.05%.

Similarly, the STT on options premium is proposed to rise from 0.1% to 0.15%, while the tax on the exercise of options contracts is set to increase from 0.125% to 0.15%. These revised tax rates are scheduled to come into effect from April 1, 2026.

Market Outlook for the Derivatives Segment

The addition of new stocks to the F&O segment comes at a time when the derivatives market faces a mixed outlook. On one hand, the NSE’s move to expand the range of tradable contracts could enhance liquidity and provide more hedging opportunities. On the other hand, higher trading costs due to the proposed STT hike may affect trader participation and reduce speculative volumes.

The exchange has also urged a review of the STT increase, noting that higher transaction taxes could negatively affect futures trading, which is often used by investors for hedging purposes.

As the new financial year begins, the success of NSE’s derivatives expansion will depend on how market participants respond to both the new trading opportunities and the tightening regulatory environment designed to protect investors.