NSE Nifty crashes 15%,all trading halted

The bourse said Emkay had placed 59 erroneous orders that resulted in multiple trades with an aggregate value of over 6.5 billion rupees on behalf of an institutional client.

The non-algorithmic trades were identified to a specific dealer terminal,the NSE said in a statement.

The exchange said it was investigating what it called abnormal orders resulting in multiple trades at low prices.

The NSE index,widely known as the Nifty,suddenly dropped by around 920 points to a session low of 4,888.20 points – 15.5 percent below its closing level on Thursday.

There was a freak trade in the cash segment which hit the circuit filter. However,the futures and options segment has not been affected,a source at the exchange told Reuters. As a result,markets stopped but trading was resumed soon after.

NSE futures and options markets traded as normal throughout,while trading on India’s BSE index was also uninterrupted.

Some financial and blue-chip stocks,including State Bank of India,mortgage lender HDFC and cigarette maker ITC fell sharply before trading was halted.

In April,a sudden drop in Nifty futures sparked speculation of an erroneous trade,but the exchange said no errors had been spotted on its trading systems.

PTI

Nifty crashes 800 pts; NSE blames broker for bad orders

New Delhi: The National Stock Exchange index Nifty crashed 800 points this morning,halting the trade,which the bourse blamed on erroneous orders worth Rs 650 crore by a broker Emkay Global for one of its clients.

The NSE said it is investigating the matter and the abnormal orders that resulted in multiple trades at low prices.

In a statement after the incident,which halted the trade in cash markets for about 15 minutes,NSE said,”The market circuit filter got triggered due to entry of 59 erroneous orders which resulted in multiple trades for an aggregate value of over Rs 650 crore.

“These orders have been entered by a trading member Emkay Global Financial Services on behalf of an institutional client.

“These non-algo market orders have been entered for an erroneous quantity which resulted in executing trades at multiple price points across the entire order book thereby causing the circuit filter to be triggered. These orders have been identified to a specific dealer terminal,” it added.

On the other hand,BSE said the market at the exchange was working fine and there were no technical or other issues at the bourse. However,the BSE index Sensex also fell by about 200 points in reaction to the plunge in Nifty,as there are many common stocks on the two indices.

The incident occurred on a day when expectations were high for a sharp upward rally on the bourses following various reform measures approved by the Union Cabinet last evening,including on FDI in insurance and pension sectors.

At 1220 hours,the markets recovered some lost ground and Sensex was trading 177 points down at 18,880.98 points. The Nifty was down 58.35 points at 5,729.25 points. Earlier in the morning,Nifty had fallen sharply by about 800 points or 16 per cent to a low of 4,997.6.

“The market opened normally today and Nifty opened at 5,815. Nifty circuit filter got triggered at 9.50.58 hours upon which the cash market was closed automatically,” NSE said.

“The exchange systems functioned normally without any glitch,but the above abnormal trades caused market closure automatically due to the index circuit filter getting triggered,the exchange added.

“The market was reopened by the exchange with a pre-open phase at 10.00.22 hrs and trading resumed at 10.05 hrs. The market is functioning normally and the incident is being investigated,” it said.

Trading in the NSE index Nifty halted after the measure plunged almost 16 per cent from yesterday’s close of 5,787.60 yesterday.

Stocks of ICICI Bank plunged to Rs 866.75 from Rs 1,083.40 on the NSE. HDFC Bank dropped to Rs 505 from Rs 631.30,TCS to Rs 1,055 from Rs 1,317.15 and Reliance Industries to Rs 682.35 from Rs 852.90.

All these stocks,which fell by up to 20 per cent,carry significant weightage on the indices.