Synopsis: Several Indian stocks, including KSR Footwear, Yash Optics, Wise Travel, Ideal Technoplast, Gujarat Apollo, and Zuari Agro, have had their price bands increased from 5% to 20%, allowing greater daily price movement.
In the stock market, price bands (also known as circuit limits) are rules established by exchanges to regulate the daily price fluctuations of a stock and mitigate excessive volatility.
When a stock’s price band changes from 5% to 20%, it means the daily price movement limit has been increased, allowing the stock’s price to rise or fall by up to 20% from the previous day’s closing price instead of just 5%. This adjustment is usually made by exchanges like NSE or BSE when the stock experiences higher trading activity or significant price changes.
Increasing the price band to 20% helps provide more flexibility for price discovery while still protecting investors from extreme fluctuations. Below is a list of stocks where the price band was recently changed from 5% to 20%.
Here is the List of stocks to look out for:
KSR Footwear Ltd
KSR Footwear Ltd is an Indian company, spun off from Khadim India Ltd, focused on affordable, branded footwear for mass markets (Tier I-III cities) in India, selling under brands like Khadim, Kalypso, Fliers, and Fitnxt, operating through a wide distributor network.
Yash Optics & Lens Ltd
Yash Optics & Lens Ltd. (YOL) is an Indian optical lens manufacturer, specializing in manufacturing, trading, and distributing a wide range of vision correction solutions, from basic single-vision to advanced progressive lenses with various coatings, serving the economy to luxury segments.
Wise Travel India Ltd
Wise Travel India Limited (WTi Cabs) is a major Indian corporate and individual ground transportation provider, offering chauffeur-driven car rentals, employee transport (MSP), airport transfers, outstation trips, and tech-enabled mobility solutions across India, known for managing large fleets and serving top corporate clients like Microsoft, Amazon, and Coca-Cola
Ideal Technoplast Industries Ltd
Ideal Technoplast Industries Ltd. is an Indian manufacturer of rigid plastic packaging, known for its automated production of durable square, round containers, and bottles for industries like paints, chemicals, food, and cosmetics, emphasizing eco-friendly practices by using recycled materials and advanced In-Mould Labelling (IML) for quality finishes.
Gujarat Apollo Industries Ltd
Gujarat Apollo Industries Ltd. (GAIL) is a leading Indian manufacturer of crushing, screening, and road construction equipment, serving mining, quarry, construction, and recycling sectors globally, known for its integrated static/mobile solutions under the Apollo group, with a focus on quality and innovation from its base in Mehsana, Gujarat.
Zuari Agro Chemicals Limited
Zuari Agro Chemicals Limited (ZACL) is a major Indian fertiliser producer, flagship of the Adventz Group, known for its “Jai Kisaan” brand of complex/speciality fertilisers, micro-nutrients, seeds, and pesticides, serving as a single-window agri-solution provider with a key manufacturing base in Goa and a focus on farmer empowerment through innovative farm support services like “Jai Kisaan Junction” retail hubs.
Why does the price band change from 5% to 20%?
Stocks are moved from a 5% band to a 20% band to better accommodate larger price movements while still managing risk. Here’s why this happens:
- Increased price volatility: When a stock’s price shows bigger swings beyond the 5% limit, exchanges increase the band to 20% to allow natural price discovery.
- Surge in trading activity: Heavy buying or selling can cause sharp price moves, so a wider band prevents frequent trading halts and helps smooth trading.
- Investor protection: While the band is increased, the limit still prevents extremely large, uncontrolled price swings that could harm investors.
- Reduce speculative trading: By adjusting the band, exchanges aim to balance quick trading without causing unnecessary panic or instability.
- Part of regular market monitoring: Exchanges continuously monitor stocks and adjust bands based on their trading patterns to maintain fair and orderly markets.
Written by Sridhar J
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
The post 5% to 20%: KSR Footwear and 5 other stocks whose price band has changed appeared first on Trade Brains.