Everything was going right in favor of Bulls Government doing big bang reforms, FII whose bags are flusehed with liquidity by ECB and Fed are bullish on india and Buying heavily and Nifty trading at 18 months high. But it took a single trade to give a blow to sentiment, Friday 05 Oct 2012 will go in as Black Friday when the flash crash happened in Indian Stock market. Prices of Blue Chips mostly in Nifty 50 stocks were down by 20-25% as shown in below screenshot. Click on Images to enlarge them.
The 50-share Nifty hit its lower circuit filter Friday as spot prices dropped over 900 points to a low of 4,888.
Sell orders worth Rs 650 crore executed by Emkay Global Financial Services sent the 50-share Nifty into a free-fall in early trade , the National Stock Exchange said. Trading in the cash market was frozen after the steep fall triggered the intra-day circuit filter, which shuts down the system when limits on either side are breached.
The NSE has said the orders executed by Emkay were on behalf of an institutional client, but the quantities were erroneous.
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.
No Trades will be cancelled: NSE
NSE reports that Circuit caused by ORDER LIMIT given. Due to the lower circuit Trading was freeze. No order will cancelled. All that mean if your SL hit or you fortunately bought at lower price. That you have to bear and carry.So NIFTY SPOT LOW: 4888.20. is legally valid and it will count.
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