Shares of Bombay Dyeing and Manufacturing Co. hit the upper circuit of 5% in trade today after the company disclosed that its board had approved the closure of its loss-making subsidiary PT Five Star Textile Indonesia on 17 December 2018.

The stock rose 4.97% intra day to Rs 115.10 in trade today compared to its previous close of 109.65 on the BSE.

The stock has been gaining for the last six days and risen 33.68% during the period. It opened with a gain of 2.05% at 111.90 on the BSE.

The stock is trading above its 50 day moving average of 105.32 and below its 200 day moving average of 187.33 on the BSE.

"As already intimated that PTFS was incurring losses for many years hence; this is in line with the strategic move to close this subsidiary. We would also like to inform that all the financial risks related to this subsidiary have been provisioned in the past years reported financials," Bombay Dyeing said in a communication to the bourses.

The Bombay Dyeing and Manufacturing Company is a holding company engaged primarily in the business of real estate development, polyester staple fibre and retail. The company's segments include real estate, polyester and retail/textile.

Meanwhile, the Sensex and Nifty were trading in the red after traders booked profit in early trade today. 

While the Sensex fell 121 points at 36,148, Nifty lost 41 points to 10,847. Top Sensex gainers were Sun Pharma (1.87%), PowerGrid (1.04%) and L&T (1%).

Edited by Aseem Thapliyal