The BSE and NSE on Monday revised the constituency limits for three companies of the Adani group – Adani Total Gas, Adani Transmission and Adani Green Energy – from 20 per cent to 10 per cent. The move comes after heavy selling caused the circle to drop in these stocks in the last two trading sessions. Following the claims of the Hindenburg Research.
In these two cycles, Adani Green lost market capitalization of Rs 1.6 trillion while Adani Total Gas Mcap eroded by Rs 1.45 trillion. Adani Transmission’s market capitalization has also fallen by around 1 trillion rupees.
Through circuit filters, exchanges limit daily fluctuations in stocks to stop inappropriate declines or rises in prices. Once the circle boundary is reached either in an upward or downward direction, the stock price cannot move further in that direction.