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Journalism of Courage
Leading course BSE today halved its circuit limits on shares of Kingfisher Airlines and group firm United Breweries Holdings Ltd,capping their maximum movement in a day at 5 per cent and 10 per cent,respectively.
The proposed changes,which were announced by BSE in a circular issued this evening and would be effective from tomorrow,follow a sharp rally in the share prices of the two companies in the past few days.
Earlier,Kingfisher shares were allowed an upward or dowmward 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 its highest level in a month. The stock had gained 9 per cent yesterday as well,after chairman Vijay Mallya said the air carrier is in talks with foreign airlines for possible stake sale.
UB Holdings stock had also gained nearly 11 per cent yesterday,although its share price settled only 1.85 per cent higher at Rs 146.05 in today’s trade. Earlier in the day,UB Holdings had risen to as high as Rs 155.85 its highest level in a year.
While Kingfisher shares have been rallying sharply for past couple of weeks,shares of other group companies have been on an uptrend for much longer period,largely on reports and speculations about stake sale in various businesses.
