Stocks removed from FNO

NSE has informed that the enclosed list of stocks have been removed from FNO with effect from April 2009 settlement ( 29-Apr-2009 ).

Many investors may wonder what impact does removal from FNO going to have on stock:

1. Speculative volume in the stock comes down : leading to fall in stock prices in the short run.
2. Hedging opportunity in the stock is lost

So what do investors do:

• It is better investors buy such stocks in the short run. You may buy it for delivery once stock prices correct.
• Remember the day when akruthi nirman was removed from FNO, the stock prices crashed by 44%. So be careful.