A rally in small-sized companies witnessed one out of six traded stocks frozen at the upper circuit on the Bombay Stock Exchange (BSE) on Thursday in an otherwise weak market.
Of the 3,666 stocks that were traded on the BSE, as many as 592 were locked in the upper circuit levels and there were no sellers on the counter, the exchange data showed.
As many as 63 per cent or 382 stocks are from the BSE X (157) and XT (225) group. The equity securities of companies that are only listed/traded at BSE and satisfy certain parameters are classified into separate sub-segments called “X”, and “XT”. At the time of review, any securities falling in trade-for-trade segment (‘DT’ or ‘T’ groups) are classified under “XT” sub-segment, BSE said.
Total 30 stocks from the S&P BSE Smallcap index were locked in the upper circuit. The list includes Tata Teleservices (Maharashtra), Suzlon Energy, Zee Learn, Zee Media Corporation, 63 Moons Technologies, Arvind SmartSpaces, BGR Energy Systems, Nahar Spinning Mills and Rajratan Global Wire.
At 02:25 pm, the S&P BSE Smallcap and S&P BSE Midcap indices were trading flat, as compared to a 0.91 fall in the Sensex.
Five stocks–CSL Finance, Vardhman Holdings, Garment Mantra Lifestyle, GP Petroleums and ARRS Infrastructure Projects– are locked in the 20 per cent upper circuit on the BSE. A total of 26 stocks are frozen at the 10 per cent circuit, while, 442 stocks are locked in the 5 per cent circuit on the BSE, data showed.
Among individual stocks, Nitin Spinners was frozen in the 5 per cent upper circuit at Rs 290.50. The stock of the textiles company is trading close to its record high level of Rs 295 touched on August 3, 2021. Currently, the stock is traded under the T Group, which represents securities that are settled on a trade-to-trade basis as a surveillance measure.
In the past six months, the stock has zoomed 101 per cent, as compared to a 13 per cent rise in the S&P BSE Sensex. The company is one of the leading manufacturers of cotton and blended yarns, knitted fabrics, greige and finished woven fabric.
On December 30, 2021, the company’s board had approved capacity expansion at a total project cost of Rs 950 crore. The expansion is targeted to be completed over next 20 months with an aim to strengthen the company’s market position and capture the benefits of a growing market opportunity in international as well as domestic markets, Nitin Spinners said.
The company further said the Indian cotton industry is well poised to take advantage of improving demand across the globe and the china + supply chain strategy adopted by global majors.