Synopsis: Several Indian stocks, including Coffee Day Enterprises, Readymix Construction Machinery, Influx Healthtech, KSR Footwear, and Wise Travel, have had their price bands increased from 5% to 20%, allowing greater daily price movement.
In the stock market, price bands (also known as circuit limits) are rules established by exchanges to regulate the daily price fluctuations of a stock and mitigate excessive volatility.
When a stock’s price band changes from 5% to 20%, it means the daily price movement limit has been increased, allowing the stock’s price to rise or fall by up to 20% from the previous day’s closing price instead of just 5%. This adjustment is usually made by exchanges like NSE or BSE when the stock experiences higher trading activity or significant price changes.
Increasing the price band to 20% helps provide more flexibility for price discovery while still protecting investors from extreme fluctuations. Below is a list of stocks where the price band was recently changed from 5% to 20%.
Here is the List of stocks to look out for
Coffee Day Enterprises Ltd
Coffee Day Enterprises Ltd (CDEL) is an Indian conglomerate, best known as the parent company of Café Coffee Day (CCD), India’s pioneering coffee chain that popularized café culture, operating hundreds of outlets and kiosks across India and exporting coffee globally.
Readymix Construction Machinery Ltd
Readymix Construction Machinery Ltd (RMX) is an Indian engineering firm, established in Pune, specializing in designing, manufacturing, and supplying turnkey solutions for dry mix mortar plants, wall putty plants, plaster sand plants, silos, and concrete batching plant equipment, focusing on customized, energy-efficient solutions for the construction sector.
Influx Healthtech Ltd
Influx Healthtech Ltd. is a Mumbai-based Contract Development and Manufacturing Organization (CDMO) established in 2020, specializing in third-party manufacturing for healthcare, nutraceuticals, cosmetics, ayurvedic, and homecare products. They provide end-to-end services from formulation and R&D to commercialization, operating certified facilities in Thane, Maharashtra.
KSR Footwear Ltd
KSR Footwear Ltd is an Indian company, spun off from Khadim India Ltd, focused on affordable, branded footwear for mass markets (Tier I-III cities) in India, selling under brands like Khadim, Kalypso, Fliers, and Fitnxt, operating through a wide distributor network.
Wise Travel India Ltd
Wise Travel India Limited (WTi Cabs) is a major Indian corporate and individual ground transportation provider, offering chauffeur-driven car rentals, employee transport (MSP), airport transfers, outstation trips, and tech-enabled mobility solutions across India, known for managing large fleets and serving top corporate clients like Microsoft, Amazon, and Coca-Cola.
Why does the price band change from 5% to 20%?
Stocks are moved from a 5% band to a 20% band to better accommodate larger price movements while still managing risk. Here’s why this happens:
- Increased price volatility: When a stock’s price shows bigger swings beyond the 5% limit, exchanges increase the band to 20% to allow natural price discovery.
- Surge in trading activity: Heavy buying or selling can cause sharp price moves, so a wider band prevents frequent trading halts and helps smooth trading.
- Investor protection: While the band is increased, the limit still prevents extremely large, uncontrolled price swings that could harm investors.
- Reduce speculative trading: By adjusting the band, exchanges aim to balance quick trading without causing unnecessary panic or instability.
- Part of regular market monitoring: Exchanges continuously monitor stocks and adjust bands based on their trading patterns to maintain fair and orderly markets.
Written by Sridhar J
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