Kindly help me understanding the following-
In case market crashes, what will be the % (percentage) fall of any stock traded at NSE.
Further, kindly tell me the concept of circuit breaker when market crashes.
Regards.
S Sinha.
Some stocks have Circuit Limit of 2%, 5% and 10%, the stocks on which Derivatives products are traded ie. F&O have no Circuit Limits.
As for Circuit Limit’s on Indices (Nifty and Sensex) they have Circuit Limit of 10%, 15% and 20%. Whenever these Circuit Limit’s are triggered, it brings trading to an halt across whole market and is resumed again after some period.
The extent of duration of the market halt and pre-open session is as given below:
You can read more on Market Circuit Limit’s here.
… and more on Price Bands for Stocks here.
Thank you very much.
May I know the halt time for stocks touching their circuit limits
Circuit Limit’s for stocks which aren’t part of F&O are static, once Circuit Limit is hit, trading is halted for the remainder of the day in that scrip.