Permanent Magnets Sees Unprecedented Buying Interest Amid Upper Circuit Lock

Strong Buying Pressure Drives Price to Upper Circuit

On 5 December 2025, Permanent Magnets Ltd witnessed a remarkable surge in demand, with buy orders overwhelming the market and no sell orders available to counterbalance. The stock touched an intraday high of Rs 867, marking a 2.0% gain for the day. This performance outpaced the broader Sensex, which recorded a modest 0.52% rise, underscoring the stock’s exceptional buying interest relative to the market.

The stock’s upward movement is further highlighted by its consecutive gains over the past two sessions, accumulating a 2.4% return during this period. Such sustained buying interest is uncommon and often indicative of strong investor conviction or anticipation of positive developments.

Price and Moving Average Dynamics

Permanent Magnets’ current price level stands above its 20-day moving average, signalling short-term bullish momentum. However, it remains below the 5-day, 50-day, 100-day, and 200-day moving averages, suggesting that while immediate buying pressure is intense, the stock is still navigating through longer-term resistance levels. This technical positioning may imply that the recent surge is part of a developing trend rather than a reversal of the broader downtrend observed over recent months.

Performance Context Over Various Timeframes

Examining Permanent Magnets’ performance over multiple periods reveals a nuanced picture. While the stock outperformed the Sensex on the day of the upper circuit, its returns over longer durations have lagged behind the benchmark. Over one week, the stock declined by 3.69%, contrasting with the Sensex’s near-flat 0.01% movement. The one-month and three-month periods show declines of 8.90% and 13.05% respectively, whereas the Sensex posted gains of 2.70% and 6.20% over the same intervals.

Year-to-date figures also reflect a challenging environment for Permanent Magnets, with a 10.24% decline compared to the Sensex’s 9.69% gain. Over one year, the stock’s performance is slightly negative at -1.22%, while the Sensex advanced by 4.83%. Despite these recent setbacks, the stock’s longer-term trajectory remains impressive, with a five-year return of 510.35% and a ten-year return exceeding 5,100%, far outstripping the Sensex’s respective 90.13% and 234.31% gains.

Sector and Industry Positioning

Permanent Magnets operates within the Other Electrical Equipment sector, a segment that has experienced mixed performance in recent months. The stock’s 1-day outperformance of 1.92% relative to its sector peers highlights its current strength amid a generally subdued environment. This divergence may reflect company-specific factors or investor anticipation of sectoral tailwinds.

Market Capitalisation and Trading Activity

The company holds a market capitalisation grade of 4, indicating a mid-cap status that often attracts a blend of institutional and retail investor interest. The current upper circuit lock, characterised by exclusive buy orders, suggests a surge in demand that could be driven by fresh capital inflows or speculative interest. Such a scenario often leads to a multi-day circuit if selling interest remains absent, potentially resulting in further price appreciation or consolidation at elevated levels.

Potential for Multi-Day Upper Circuit Scenario

The absence of sellers and the presence of only buy orders in the queue is a rare market condition that can lead to a prolonged upper circuit. This phenomenon occurs when the stock price hits the maximum permissible limit for the day and trading continues with only buy orders pending. For Permanent Magnets, this situation indicates extraordinary buying enthusiasm that may persist if no significant selling pressure emerges.

Investors should monitor the stock closely in the coming sessions to assess whether this momentum sustains or if profit-taking emerges to balance the order book. The multi-day circuit scenario can create volatility and rapid price movements, which require careful consideration for portfolio positioning.

Investor Considerations Amid Volatility

While the current buying frenzy and upper circuit lock present an intriguing opportunity, investors should weigh the stock’s recent underperformance over medium-term horizons against its long-term growth record. The stock’s substantial gains over five and ten years demonstrate its capacity for significant value creation, yet the recent negative returns over one month and three months highlight prevailing challenges.

Market participants may wish to consider the broader economic and sectoral context, including demand trends for electrical equipment and any company-specific developments that could influence future performance. The stock’s technical position, with price above the 20-day moving average but below longer-term averages, suggests a developing trend that requires confirmation through sustained price action.

Conclusion: A Stock Under the Spotlight

Permanent Magnets Ltd’s current market behaviour, marked by an upper circuit lock and exclusive buy orders, signals a rare and powerful buying interest that could extend over multiple sessions. This scenario places the stock firmly in the spotlight within the Other Electrical Equipment sector, attracting investor attention and speculation.

As the stock navigates this intense demand phase, market watchers will be keen to see whether the momentum translates into a sustained uptrend or if profit-taking and market dynamics restore equilibrium. For now, Permanent Magnets stands as a compelling example of how concentrated buying interest can shape price action and market sentiment.

Limited Time Only! Upgrade now and get 1 Year of Stock of the week worth Rs. 14,999 for FREE. Don't miss out on this exclusive offer. Claim Your Free Year →