BSE lowers circuit limit for Kingfisher shares to 5%
The BSE Thursday lowered the circuit limit for shares of Kingfisher Airlines capping its maximum movement in a day at 5 percent after a recent rally in the stock.
Mumbai: The BSE Thursday lowered the circuit limit for shares of Kingfisher Airlines capping its maximum movement in a day at 5 percent after a recent rally in the stock.
The change will be effective from tomorrow and follows a sharp rally in the share price of the company in the past few days, where it has surged by more than 35 percent.
In a circular, the exchange said, "The circuit filter has been changed from their existing levels in the scrip (of Kingfisher) with effect from September 27, 2013."
In addition, BSE has set a circuit level of 20 percent for Raymond Ltd and 10 percent for Indian Hotels Company Ltd.
Earlier, Kingfisher shares were allowed an upward or downward movement of 10 percent in a day.
The exchanges generally lower the circuit filter of a stock as part of their surveillance mechanism to avoid excessive volatility in the share price.
Kingfisher has seen an upward movement in its share price in the past few days after its Chairman Vijay Mallya said that the carrier is in talks with a foreign investor for potential stake sale.
Shares of Kingfisher today climbed by 9.91 percent to close at Rs 6.21 apiece on the BSE.