Mumbai: A gain or loss of 1,300 points in the stock market’s benchmark index ‘Sensex’ would be necessary to trigger a nationwide trading halt in equity as well as derivatives markets in the first quarter of the current fiscal.
As per the latest Index-based market wide circuit breaker set by the Bombay Stock Exchange, which is revisited at the end of every quarter, the circuit breaker becomes applicable after a movement of 10%, 15% and 20% in the benchmark index.
The circuit breaker would bring about a coordinated trading halt in all equity and equity derivative markets nationwide and these circuit limits would be triggered by movement of either the Sensex or National Stock Exchange’s 50-share Nifty index, whichever is breached earlier, the BSE said in a statement.
The percentage movement is calculated on the closing index value of the quarter and are translated into absolute points of index variations with a rounding off to the nearest 25 points.
At the end of each quarter, these absolute points of index variations are revised and made applicable for the next quarter.
The Sensex closed at 13,072.10 on 30 March, the last trading day of the previous quarter. According to the circuit limits set for the current quarter, 10% trigger would be effective after a 1,300 points movement, while 15% and 20% triggers would come into effect after a movement of 1,950 and 2,600 points in the Sensex.