Mumbai: A technical error on Friday took the Nifty down 800 points to 4,997 at around 10 am, due to which trading was halted for a while. But trading in the National Stock Exchange's cash market has resumed after the brief halt.
While brokers speculated that it could have been caused by a freak trade, NSE said that it was shut due to execution of bulk orders. In a statement to CNBC-TV18, NSE said, "NSE was shut from 9:50 am to 10:05 am. Actual execution of bulk orders wiped out order book. There was no algorithm trading error and noo systematic error was involved on NSE's side."
The NSE said financial firm Emkay Global Financial Services was responsible for the erroneous trades of over 6.5 billion rupees that caused a halt in the bourse's trading systems. 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 50-share Nifty fell over 160 points down to an intra-day low of 5625 earlier, with stocks like Bharti Airtel, Cipla, SBI, Hindustan Unilever and Axis Bank tumbling between 8 to 11 per cent. Even as the NSE froze trading in the cash market, the 30-share Sensex fell around 290 points, but recovered quickly.
(With additional information from PTI)
Comments
0 comment