RBL Bank Shares Decline For Fifth Consecutive Day, Declines By Over 10%
Mumbai-based RBL bank shares appear to be on the decline. This, after the lender continued to trade with deep cuts on the last day of trade, Friday, December 20.
RBL Bank Barred From F&O
The overall decline in the value of the company shares in the past 5 trading sessions amounts to over 10 per cent.
The journey of decline continued on Friday as well, with cuts amounting to over 5 per cent.
This comes to pass after the bank was barred from F&O or Futures and Options trade on December 16.
What is F&O Trading?
Futures & options are financial derivatives. These derivatives are based on speculation over the future asset prices of assets like stocks, commodities, or currencies. Here, investors can speculate on market price changes or to hedge risk.
Coming back to RBL Bank, the shares of the bank have been on a decline since the ban was introduced.
According to the market regulator SEBI, in the futures and options (F&O) segment, RBL, along with other companies that were banned, exceeded 95 per cent of the market-wide position limit (MWPL).
It is to be noted, that they have not been from the market, as these shares have continued to be available for trading in the cash market.
RBL Bank Shares In Decline
The company shares have declined by an overall 10.43 per cent or Rs 18.07 in the past 5 days of trading.
On Friday, after opening at Rs 165.00, higher than the previous day's closing of Rs 164.30 per share. This took the overall decline in the value of shares dipped further as the day's trade progressed.
Stock price on December 20. At 12:29 IST, the shares declined by 6.54 per cent or Rs 10.74. This took the overall of the shares to Rs 153.59 per share. This value isj just about half of the the stock's 52-week-high of Rs 300.70 per share.