Bombay Dyeing is among the top five gainers on the BSE, going up over 6% to Rs.217.10 from yesterday’s close of Rs.204.50. Its 52-week high is at Rs.245.70.

There is no fundamental change or news from the company; the reaction is more to the news that its circuit filter has now been revised from 5% to 20%. This gives traders more leeway to buy/sell and we can see that happening today.

On the BSE, stocks have a daily price band of 20%, 10%, 5% and 2%. There is an additional price band, applicable weekly, monthly, quarterly and yearly for stocks which do have derivative products based on them. 

This means that Bombay Dyeing , which is now in the 20% band, will be allowed a price rise or fall of only 60% in a week, 100% in a month, 200% in a quarter and not more than 400% in a year.

And the circuit filters are revised upwards or downwards based on the liquidity or trading which happens on the counter.