A few days back I saw a crash in jyothylab from around 600rs to the current price of around 200rs. I was shocked. It wasn’t only on kite but other sites too. But now looking at the chart there was no such crash. Why does this happen? has it happened with you too?
It’s not a crash, the stock is just trading ex-bonus.
You might want to read the Varsity chapter on corporate actions.
I’ve one question though. The current chart of jyothylab doesn’t seem to reflect this change. Like it seems that the price has been in the rs. 200 range for quite some time whereas we know this isn’t the case. How are the charts adjusted for this sort of situation.
The historical prices are adjusted automatically because otherwise the chart will not make sense. In case of Jyothy Lab it would look like some sort of steep decline, implying some negative news trigger (which is definitely not the case).
An easy way to spot these price adjustments is to go to investing.com and look for these info “bubbles”: