Shares of Tata Chemicals shed more than 8% (20-03-2024 at 11:30 am) after its exit from the F&O ban. The stock had remained in the F&O ban through most parts of the March F&O series. It reached an intraday low of ₹1,021.80 today.

Earlier this month, Tata Chemicals’ shares rallied more than 40% amid reports of the potential listing of Tata Sons by September 2025 in order to comply with the RBI’s norms. However, the group is considering various options including paring debt and hiving off entities like Tata Capital to avoid getting listed.

But how is the exit from the F&O ban relevant?

Now that the stock is out of the F&O ban, it is possible to create new positions like selling a call option or buying a put option, which was not possible during the ban period. Fresh bearish positions seemed to have put more pressure on the stock.