The Hindu Business Line : Every fourth stock hits lower circuit

The BSE's statistics show that 694 stocks out of a total of 2,660 stocks traded hit the lower circuit. When a stock hits lower circuit, there are only sellers and no buyers.

The B2 group was the highest contributor to the list, with 287 stocks, while none of the A-group stocks hit downward freeze.

As many as 126 stocks in the T-group hit lower circuit, as did 111 from the B1 group.

Against this, 35 stocks hit the upper circuit filter, predominantly from the B2 group.

According to brokers, with the market fall of such magnitude it is no surprise that many stocks hit downward freeze.

Besides, leverage trading also weakened stock prices as brokers unwound the positions of their clients to meet margin obligations, they added.

Of the total traded stocks, 2,363 stocks or 90.5 per cent declined while only 220 stocks (8.43 per cent) finished in the green, even as 28 stocks (one per cent) remained unchanged.

Some of the stocks that hit lower circuit were Crisil, Gujarat Flourochemicals, KSB Pumps, Texmaco, Unitech, Amararaja Batteries, Bajaj Hindustan, HFCL, Aftek and Bayer Cropscience.

The Sensex has crashed by 14.5 per cent over a month, and by about nine per cent since February 27 alone.

The fall was accompanied by healthy volumes; today, the average turnover on the BSE stood at Rs 4,133.45 crore.

With many predicting further fall for the market, these statistics indicate more pain in the offing with investors set to find it difficult to offload stocks as liquidity dries up for second- and third-rung stocks.

The fall would get exacerbated under such circumstances.

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