Circuit limits, or price bands, are mechanisms implemented by stock exchanges to control extreme price movements of stocks within a trading session. These limits are designed to protect investors from excessive volatility and to maintain orderly market conditions.
These limits are typically set as percentages of the stock’s previous closing price, with common thresholds being 2 percent, 5 percent, 10 percent, or 20 percent.
This means that the stock can only move within these limits before trading is halted to prevent excessive price fluctuations and protect investors from significant losses.
However, certain stocks may not have circuit limits due to various reasons including high liquidity, market capitalization and regulatory decisions. Further, stocks with derivatives or part of indices may not have circuit limits, allowing for more flexibility in trading.
Stocks that are highly liquid tend to have stable prices and thus may not require circuit limits as they can absorb large trades without significant price fluctuations. Larger companies with substantial market capitalization often experience less volatility, making circuit limits unnecessary.
Here are three stocks in which the upper circuit band has broken in recent months:
Oracle Financial Services Software Limited
With a market cap of Rs. 96,440 crores, the stock dropped by nearly 1.66 percent on BSE to Rs. 11,080 in today’s trading session.
In Q1 FY25, the company’s revenue from operations reached Rs. 1,674 crores, increasing by nearly 16 percent YoY, while the net profit grew by around 38.6 percent YoY to Rs. 578 crores.
The stock has delivered multibagger returns of nearly 188.3 percent in the last one year, as well as around 158.4 percent returns year-to-date.
Incorporated in 1989, Oracle Financial Services Software Limited is engaged in providing financial software, custom application development, consulting, IT infrastructure management, and outsourced business processing services to the financial services industry.
Polycab India Limited
With a market cap of Rs. 95,500 crores, the shares of India’s leading manufacturers of cables and wires dropped by nearly 0.63 percent on BSE to Rs. 6,354 in today’s trading session.
In Q1 FY25, the company’s revenue from operations reached Rs. 5,498 crores, rising by nearly 30.3 percent YoY, while the net profit grew by around 3.5 percent YoY to Rs. 445 crores.
The stock has delivered positive returns of nearly 29.5 percent in the last one year, as well as around 17 percent returns year-to-date.
Polycab India Limited is the leading manufacturer and seller in India for a wide range of wires and cables including power cables, control cables, solar cables, building wires, communication cables, welding cables and others, for retail and industrial use
Ambuja Cements Limited
With a market cap of Rs. 1.42 lakh crores, the shares of one of the leading cement companies in India dropped by nearly 0.40 percent on BSE to Rs. 577.4 in today’s trading session.
In Q1 FY25, the company’s revenue from operations reached Rs. 7,516 crores, growing by nearly 1.2 percent YoY, while the net profit decreased by 52 percent YoY to Rs. 473 crores.
The stock has delivered positive returns of nearly 37 percent in the last one year, as well as around 8 percent returns year-to-date.
Ambuja Cements Limited, a member of the Adani Group, is engaged primarily in the business of manufacturing and marketing cement and cement-related products.
Following are a few stocks with no price bands or circuit limits:
National Aluminium Company Limited
With a market cap of Rs. 41,085.4 crores, the shares of India’s leading producer and exporter of alumina and aluminium surged by nearly 4 percent on BSE to Rs. 227.35 in today’s trading session.
In Q1 FY25, the company’s revenue from operations reached Rs. 2,856 crores, declining by nearly 10.2 percent YoY, but the net profit grew by 76 percent YoY to Rs. 588 crores.
The stock has delivered multibagger returns of nearly 143 percent in the last one year, and around 64.4 percent of positive returns year-to-date.
Incorporated in 1981, National Aluminium Company Limited (NALCO), the Navratna CPSE under the Ministry of Mines, Govt. of India, is engaged in the business of manufacturing and selling of alumina and aluminium.
Bharat Electronics Limited
With a market cap of Rs. 2.08 lakh crores, the shares of this Navratna Defence Public Sector Undertaking (PSU) dropped by nearly 1.44 percent on BSE to Rs. 284.4 in today’s trading session.
In Q2 FY25, the company’s revenue from operations reached Rs. 4,605 crores, rising by nearly 15 percent YoY, while the net profit grew by 38.4 percent YoY to Rs. 1,093 crores.
The stock has delivered positive returns of nearly 104.6 percent in the last one year, and around 45.8 percent of positive returns year-to-date.
Bharat Electronics Limited is primarily engaged in the business of manufacturing and supplying electronic equipment and systems for the defence and civilian segments.
Ultratech Cement Limited
With a market cap of Rs. 3.20 lakh crores, the shares of the third largest cement producer in the world, outside of China, surged by nearly 1 percent on BSE to Rs. 11,091 in today’s trading session.
In FY24, the company’s revenue from operations reached Rs. 70,908 crores, rising by nearly 12.2 percent YoY, while the net profit grew by around 38 percent YoY to Rs. 7,004 crores.
The stock has delivered positive returns of nearly 32 percent in the last one year, as well as around 6.2 percent returns year-to-date.
UltraTech Cement Limited is engaged in the business of manufacturing and sale of Cement and Cement-related products. It is India’s largest manufacturer of grey cement and ready-mix concrete, and one of the top manufacturers of white cement.
Coforge Limited
With a market cap of Rs. 50,780 crores, the shares of a leading global IT solutions organization dropped by nearly 1.12 percent on BSE to Rs. 7,655 in today’s trading session.
In Q2 FY25, the company’s revenue from operations reached Rs. 3,062 crores, rising by nearly 34.5 percent YoY, while the net profit grew by around 24.5 percent YoY to Rs. 234 crores.
The stock has delivered positive returns of nearly 54.5 percent in the last one year, as well as around 24.5 percent returns year-to-date.
Coforge Limited is an Information Technology (IT) services company providing end-to-end software solutions and services.
The company is engaged in application development & maintenance, managed services, cloud computing and business process outsourcing to organisations in a number of sectors viz. financial services, insurance, travel, transportation & logistics, manufacturing & distribution and government.
Written by Shivani Singh
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