What are market-wide circuit breakers?

In India, there are market-wide circuit breakers that are triggered based on the movement of the Nifty 50 Index. There are three levels of circuit breakers that can be triggered - 10%, 15%, and 20%. When a circuit breaker is triggered, trading on all equity and equity derivative markets across the country is halted for a certain period of time. The goal is to prevent a market crash and give investors time to cool off and make informed decisions. It's like a time-out for the stock market.

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