The 50-share Nifty hit its lower circuit filter Friday as spot prices dropped over 900 points to a low of 4,888. The sharp fall was probably on account of a freak trade - an erroneous punching order by a large trader. The sudden crash affected the BSE Sensex too, which dropped nearly 300 points to slip below the 19,000 mark. However, the trade was not executed on the BSE, so it was not affected as badly as the NSE, where trade had to be halted.
"The market at BSE is working fine and trading members are informed that there are no issues technical or otherwise at BSE," BSE said in a statement.
Indian markets recovered after the flash crash and normal trading resumed on the NSE.
The sharp fall was reminiscent of a flash crash in US stocks on May 6, 2010 in which the Dow Jones plunged about 1000 points—or about 9 per cent—only to recover those losses within minutes. It was the second largest point swing, 1,010 points, and the biggest one-day point decline, 998.5 points, on an intraday basis in Dow Jones Industrial Average history.
The last time Indian markets were hit by such erroneous trade was in April 2012 when the Nifty futures crashed over 300 points in afternoon trade. The same day, a similar trade was witnessed in Infosys futures.
In 2010, shares of Reliance Industries had crashed nearly 20 per cent on execution of a large 'sell' order at a very low price. The Sensex had plunged more than 600 points after the order was executed on BSE. Reliance has the highest weightage on the Sensex.
(With inputs from Reuters)
The 50-share Nifty hit its lower circuit filter Friday as spot prices dropped over 900 points to a low of 4,888. The sharp fall was probably on account of a freak trade - an erroneous punching order by a large trader. The sudden crash affected the BSE Sensex too, which dropped nearly 300 points to slip below the 19,000 mark. However, the trade was not executed on the BSE, so it was not affected as badly as the NSE, where trade had to be halted.
"The market at BSE is working fine and trading members are informed that there are no issues technical or otherwise at BSE," BSE said in a statement.
Indian markets recovered after the flash crash and normal trading resumed on the NSE.
The sharp fall was reminiscent of a flash crash in US stocks on May 6, 2010 in which the Dow Jones plunged about 1000 points—or about 9 per cent—only to recover those losses within minutes. It was the second largest point swing, 1,010 points, and the biggest one-day point decline, 998.5 points, on an intraday basis in Dow Jones Industrial Average history.
The last time Indian markets were hit by such erroneous trade was in April 2012 when the Nifty futures crashed over 300 points in afternoon trade. The same day, a similar trade was witnessed in Infosys futures.
In 2010, shares of Reliance Industries had crashed nearly 20 per cent on execution of a large 'sell' order at a very low price. The Sensex had plunged more than 600 points after the order was executed on BSE. Reliance has the highest weightage on the Sensex.
(With inputs from Reuters)
The 50-share Nifty hit its lower circuit filter Friday as spot prices dropped over 900 points to a low of 4,888. The sharp fall was probably on account of a freak trade - an erroneous punching order by a large trader. The sudden crash affected the BSE Sensex too, which dropped nearly 300 points to slip below the 19,000 mark. However, the trade was not executed on the BSE, so it was not affected as badly as the NSE, where trade had to be halted.
"The market at BSE is working fine and trading members are informed that there are no issues technical or otherwise at BSE," BSE said in a statement.
Indian markets recovered after the flash crash and normal trading resumed on the NSE.
The sharp fall was reminiscent of a flash crash in US stocks on May 6, 2010 in which the Dow Jones plunged about 1000 points—or about 9 per cent—only to recover those losses within minutes. It was the second largest point swing, 1,010 points, and the biggest one-day point decline, 998.5 points, on an intraday basis in Dow Jones Industrial Average history.
The last time Indian markets were hit by such erroneous trade was in April 2012 when the Nifty futures crashed over 300 points in afternoon trade. The same day, a similar trade was witnessed in Infosys futures.
In 2010, shares of Reliance Industries had crashed nearly 20 per cent on execution of a large 'sell' order at a very low price. The Sensex had plunged more than 600 points after the order was executed on BSE. Reliance has the highest weightage on the Sensex.
(With inputs from Reuters)