The Hindu Business Line : New Year party continues as 1,146 stocks hit upper circuit

Chennai, Jan. 1 Investors celebrated the first day of 2008 in grand style with the number of stocks hitting the upper circuit filter crossing 1,000 again on the Bombay Stock Exchange. This is the second consecutive day it has happened as the small- and medium-cap stocks continued to be the darling of investors, particularly for the retail segment.

On Tuesday, the number of stocks hitting the upper circuit stood at 1,146 a tad below Monday’s figure of 1,223. The number of stocks hit the lower circuit limit stood at 30 (the corresponding figure on Monday was 19). In percentage terms, the total number of stocks that hit the upper circuit limit stood at 40 per cent.

A stock hitting upper circuit means that there were only buyers and no sellers for that stock. The logic is vice-versa for lower circuit. The imposition of circuit filters on stocks ensures that the price of the scrip cannot move upward or downward beyond the limit set for a day and that would curtail excessive speculation.

T-group action

Most of the stocks that hit the upper circuit were once again from T-group, which accounted for 446 stocks against Monday’s figure of 457. According to the BSE, T-group means the stock has to be delivered compulsory at the time of buying/selling. As many as 340 stocks hit the upper circuit from B2-group, six from A-group and 99 from B1-group while S-group accounted for 101.

The advance-decline ratio was also in favour of the bulls as 78 per cent of the total traded stocks gained in value against 21 per cent that saw decline in value.

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