The domestic markets recovered on Friday after a horror start early in the morning leading to halt in trading. The trading was paused for 45 minutes after both indices plunged over 10 per cent, hitting their lower circuit limits, within the first 15 minutes of opening of the session. Tech Mahindra was the top loser on Sensex, cracking up to 15 per cent, followed by Axis Bank, IndusInd Bank, HCL Tech, Kotak Bank and TCS. However, after re-open, the markets surged and the V-shaped curve was welcomed by all.

What is Lower Circuit?

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The index-based market-wide circuit breakers have been implemented by the Indian markets since July 2, 2001, based on the Securities and Exchange Board of India (SEBI) guidelines. It is applied if the markets fall by 10%, 15% or 20%. These breakers, when triggered,  bring about a coordinated trading halt in all equity and equity derivative markets nationwide, the NSE has said in a note.

WATCH | Zee Business' take on Lower Circuit 

When did Indian Markets hit Lower Circuit last?

The Indian markets have hit the lower circuit a total of five times, with the last one coming about 12 years ago during the 2008 crisis. Apart from it the markets hit lower circuits in 2004, May 2006, January 2008 and October 2017.

What happens during Lower Circuit?

A pre-opening session is hosted for 15 minutes from 10:05-10:20 am and normal trading will resume from 10:20 am. This is what happened today.