After opening positively in the morning, the National Stock Exchange, Friday suddenly dipped sharply by 900 points which created havoc in the market and the wiped out about US $120 million (approx.) in value.
However, market resumed upwards north word but could not resume the potential loss.
The government has order to Security and Exchange Board of India (SEBI) to probe the reason of this flash plunge.
The market closed on at 5,746.95 with the low of 40.65 points (0.70%) from today's opening.
The Bombay Stock Exchange (BSE), Asia's oldest stock exchange saw over 500 points intraday fluctuation and closed at a low of 18938.46 with 119.69 points (0.63%).
According to news reports from NSE, where trading in the S&P CNX Nifty (NIFTY) Index and in some individual companies had stopped for 15 minutes at 9:49 a.m. after NIFTY, the pack of 50-stock measure plummeted to 16% to 4,888.20, the mayhem occurred due to 59 erroneous orders placed by Emkay Global Financial Services Ltd. (EMKAY) for an institutional client at a single dealer terminal, resulting in trades worth over Rs 6.5 billion.
"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," the NSE said in a statement.
The 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE), which opened at 19,115.89 points, closed at 18,938.46 points (provisional), 119.69 points or 0.63 percent down than its previous day's close at 19,058.15 points.
The Sensex touched a high of 19,137.29 points and a low of 18,757.34 points in intra-day trade. The BSE midcap index was down 53.12 points, while the smallcap index was lower by 65.16 points.
On the sectoral front, the BSE IT index was down 97.12 points followed by health care index, down 105.83 points, and the banking index, down 145.33 points.
The Sensex Thursday crossed the 19,000-point mark for the first time in almost 15 months, rising over 200 points, expecting reforms in the pension and insurance business.
Major Sensex gainers were Tata Motors, 2.24 percent at Rs.280.35; Hindustan Unilever, 1.60 percent at Rs.564.50; Mahindra and Mahindra, up 1.16 percent at Rs.869.05; ONGC, up 1.09 percent at Rs.287.20; and Hindalco Inds, up 0.89 percent at Rs.125.
The main losers were HDFC, down 4.89 percent at Rs.749.65; Sun Pharma, down 2.48 percent at Rs.681.05; Wipro, down 2.41 percent at Rs.373.80; Infosys, down 1.84 percent at Rs.2,527.90; and ICICI Bank, down 1.57 percent at Rs.1,066.65.
--With IANS Inputs--
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