Trading mistakes crash Indian stock exchange
MUMBAI (AFP) - Mistakes by a local brokerage in placing orders worth US$125 million (S$153 million) briefly crashed India's National Stock Exchange on Friday, leading to a 15.5 per cent fall in the main index and a suspension of trading.
The exchange's Nifty index fell 920 points on Friday morning with shares in heavyweight financial stocks such as State Bank of India (SBI) and HDFC particularly hard hit.
"The Nifty fall was on account of abnormal orders resulting in multiple trades at low prices," a statement from the exchange said. "The circuit filter got triggered and the market closed automatically." After the automatic suspension of 10 minutes, designed to ensure stability on the market and avoid wild fluctuations, trading resumed in line with global trends and India's other market, the Bombay Stock Exchange.
Mumbai's Emkay Global Financial brokerage, which placed the erroneous trades, was later suspended from trading at the exchange and could face a large liability related to the 59 mistaken orders.