What is Lower Circuit in Stock Market?

In the world of stock markets, terms such as 'lower circuit' may often seem complex, especially for beginners. A lower circuit prevents a stock's price from falling beyond a certain percentage limit in a single trading day. Stock exchanges set up price bands for stocks and even indices based on their previous day’s price or level. It is meant to protect investors from sudden and harsh market movements. Watch the video to understand the concept of lower circuit in a simple and easy way.