Tata Technologies Ltd.’s shares fell above 6%, and the shares entered the Futures & Options segment with the launch of the March series. The move shows a noticeable change for companies joining the ranks of other prominent stocks trading in the F&O segment.
Tata Technologies, a subsidiary of Tata Motors, has expertise in product engineering and digital transformation services. The company provides solutions to the automotive, aerospace and industrial machinery sectors.
To enter the F&O segment means that Tata Technologies shares can be traded through futures and options agreements. These derivative instruments allow investors to buy and sell shares at a given price in the future day, providing opportunities for hedging and speculation. This could lead to increased liquidity and trading volume, but it also introduces higher volatility and risk.
In addition to Tata Technologies, four other stocks (Ireda Ltd., IIFL Finance Ltd., Patanjali Foods Ltd. and Titagarh Rail Ltd.) also began trading with F&O contracts at the start of the March series. The development is expected to attract more traders and investors, and could affect the stock prices of these companies in the coming weeks.
