Upper circuit is a system to curb excessive speculation in the stock market, applied by the stock exchange authorities, when the index spurts or plunges by more than a fixed limit. Trading is then suspended for some time to let the market cool down. The market wide circuit breakers would be triggered by movement of either Sensex or the NSE S&P CNX Nifty whichever is … [Read more...]
Circuit in Stock Market
The circuit is a upper and lower limit beyond which the trading is not allowed. Different stocks have different circuit limits. Usually they are 5%, 10% and 20%. For example, let's say closing price of X stock yesterday was 100 Rs. The applicable circuit limit for X is 5%. In this circumstances, the price of X can't go above 105 (5% above previous close) and below 95 (5% below … [Read more...]
INDUSTRY UPDATE; MUTUAL FUND
Falling market and redemption pressure pull down AUMs Total asset under management (AUM) of equity mutual funds (MFs) in October 2009 stood at Rs203,826 crore, 4.3% lower than that in September 2009. On adjusting for net inflows/outflows, the same declined by 3.2%, which was better than the market decline of 7.2% in the same period. … [Read more...]
Stock update ; Jaiprakash Associates
Jaiprakash Associates Cluster: Ugly Duckling Recommendation: Hold Price target: Rs266 Current market price: Rs237 To raise funds through equity dilution in subsidiary The management of Jaiprakash Associates Ltd (JAL) has announced that the company is looking at diluting 15% stake in its subsidiary, Jaypee Infratech Ltd (JIL), for Rs2,500 crore. JIL is constructing the … [Read more...]
STOCK UPDATE ;Selan Exploration Technology
Selan Exploration Technology Cluster: Ugly Duckling Recommendation: Hold Price target: Rs360 Current market price: Rs336 Price target revised to Rs360 Result highlights Selan Exploration Technology (Selan) has announced its results for the second quarter of FY2010. On an annual comparison basis, Selan?s Q2FY2010 revenues are down sharply by 48.4% as its realisations … [Read more...]