Non F&O Stocks have a circuit limit band between 2 to 20% usually.
F&O Stocks have a circuit limit band of 10% and it expands by 5% every 15 minutes once the conditions are met.
Circuit limit is calculated on previous day’s last 30 minute average close price.
My questions is:
Example: On 15 Jan XYZ stock closed at 100 INR, it’s circuit band is 20%. On 16th Jan it gives a dividend of 1 INR. What will be the circuit limits? Will they be 80 (lower) and 120 (upper)?
And If the dividend is of like 25 INR instead of 1 INR. What will happen to the circuit limits?
Can you give the answer in both conditions, If XYZ is in F&O and not in F&O. Does that change something?
Interesting. Never really thought about it.
Let me take a guess.
If the dividend is categorised as extraordinary (2percent and above) then I guess circuit values will be calculated after adjusting for dividend.
In your example of stock of 100 rupees let’s say dividend of 10 is declared. Then price gets adjusted to 90 and then circuit limits are considered on this value. But if like you mentioned, dividend is just 1, then circuits are calculated on 100 only.
Again, I am just taking a logically guess.
Wait for somebody to post a link. (Me lazy)
Have asked @Ananth from our team to check this and get back.