New Delhi. As soon as the counting of votes for the Lok Sabha elections started and the trends started coming, there was a stampede in the stock market.
The situation was such that the Sensex was trading at a decline of more than 5 percent for the first time after the Corona period, while the Nifty also fell by more than 5 percent. The possibility of lower circuit in the market has also become strong. In such a situation, market regulator SEBI has decided to stop trading for some time. However, this will happen only when a lower circuit is imposed in the market.
Market regulator SEBI has issued a proper timing, which tells when the trading in the market will be halted. During this time, there will be no buying and selling of shares. If a lower circuit is applied today, i.e. on June 4, then the trading in the market will be halted twice, while today the market will close about an hour before time.
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When will trading not take place?
Trading in the stock market will be stopped thrice today, out of which it will be closed on the third time. As per SEBI’s timing, if the first 10 percent lower circuit is hit, the trading in the market will stop at 1 pm. It will remain closed for about 45 minutes. Then the trading will resume at 1.45 pm. If the lower circuit is hit even after this, then the trading will again be stopped for 15 minutes between 2 to 2.30 pm.
Market to close after 2.30 pm
After stopping trading twice, finally the market will be closed about an hour earlier today. If a lower circuit is applied for the third time as well. This is being done for the safety of investors. According to SEBI, there will be no trading in the market after 2.30 pm on June 4. SEBI’s intention is to save investors’ money from sinking, because lakhs of crores of rupees have been lost due to the continuous fall in the market today.
What is the math of lower circuit in the market?
If Nifty falls by 2326 points, then a lower circuit will be applied. At 12.27 pm, it was trading at a drop of 1,898 points. A lower circuit is applied on a drop of 10 percent i.e. 2326 points. After this, a lower circuit will be applied on a drop of 15 percent i.e. 3489 points and then a drop of 20 percent i.e. 4653 points. All these figures are for Nifty.
