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Following a sharp rally in the stock price of Kingfisher Airlines and group firm United Breweries over the last few days the Bombay Stock Exchange halved the circuit limits on these two companies with effect from Friday.
According to the announcement made through a BSE circular, the exchange has capped their maximum movement in a day at 5 per cent and 10 per cent respectively.
Earlier, Kingfisher shares were allowed an upward or downward movement of 10 per cent in a day, while the circuit filter limit for the group’s holding firm United Breweries (Holdings) Ltd was 20 per cent.
The exchanges generally lower the circuit filter of a stock as part of their surveillance mechanism to avoid excessive movement in the share price.
Kingfisher shares today rose by 8.03 per cent to close at Rs 16.96 at the BSE, after touching an intra-day high of Rs 17.18 which was the month’s highest on a day that Kingfisher Airlines chairman Vijay Mallya made a presentation to the SBI led consortium of banks on the airline's fund raising plans. The stock had rallied 9 per cent on Wednesday as well, after chairman Vijay Mallya said the air carrier was in talks with foreign airlines for a possible stake sale.
UB Holdings stock settled 1.85 per cent higher at Rs 146.05 on the BSE on Thursday after a near 11 per cent gain on Wednesday. Earlier in the day, UB Holdings had risen to as high as Rs 155.85-its highest level in a year.
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