Canara Bank slides over 4.50% despite stock coming out of F&O ban list

Canara Bank Share Price: In the first session after NSE removes Canara Bank from the futures and options (F&O) ban list, the lender's shares tanked on BSE on Thursday (May 16, 2024).

The stock that closed at Rs 119.00 on Wednesday slumped by 4.62 per cent to Thursday's low of Rs 113.50.

Canara Bank shares that started the trading session at Rs 120.75 each on Wednesday were trading lower by 4.37 per cent, or Rs 5.20, at Rs 113.80 apiece at 11:30 am on Thursday.

NSE updates the list of securities on the F&O ban list every day. The open interest for F&O contracts of Canara Bank declined below 80 per cent limit to 75 per cent. So, it was removed from the list on Thursday.  

The PSU stock's performance is in stark difference its performance from Wednesday when it had rallied by five per cent. 

The reason why the stock soared a day ago was its split into a lower face value. 

The Canara Bank stock which had a face value of Rs 10 each sub-divided into five fully paid up shares of Rs 2 each.

May 2024 index review by MSCI said that Canara Bank is one of 13 shares to be included to MSCI India index with effect from May 31.

Kushal Gupta gives 'buy' call

Zee Business analyst Kushal Gupta has given a 'buy' call on the PSU bank with a target price of Rs 123 and stop loss at Rs 117.