Stocks

NSE examining complaints of tech glitch in Nifty index

PALAK SHAH Mumbai | Updated on June 04, 2020 Published on June 04, 2020

The National Stock Exchange (NSE) has received complaints from brokers of a tech glitch on Thursday with its Bank Nifty index option prices updating with a delay on the broker screens. The glitch also impacted timely trade confirmation, sources told Business Line. Brokers had to stop client trading briefly due to this the sources said.

“Few members have reached out to us, and we are examining it,” NSE spokesperson said when contacted by Businessline.

Both the Nifty and Bank Nifty index fell sharply before the tech glitch could be resolved, giving some respite to the outstanding large short positions in the indices. Short sellers have been in doldrums as Nifty index gained nearly 12 per cent in just six trading sessions, which is among its fastest rally this year. The Bank Nifty index gained nearly 20 per cent during the same time. The rally in the Nifty index started around 9800 levels and was unstoppable till 10,000 levels. The Bank Nifty index rose from around 18,000 levels to nearly 21,000 mark in just about a week before the Thursday’s tech glitch gave them a breather.

“The tech glitch came as a blessing in disguise but many traders who could cover their short positions for the first time in nearly a week without the markets moving up. Whatever could be saved,” said a head of derivative desk at a Mumbai brokerage.

Around 50 per cent of the loss from the days low levels was recoverd by the indices Nifty and Bank Nifty at around 1:45 pm. The Nifty index had touched a low of 9,994 after it fell by more than 100 points. The Bank Nifty fell to 20,316 after it fell by nearly 600 points. Around 1.45 pm, Nifty was trading at 10,007 and Bank Nifty index was 20,569 levels.

Foreign portfolio investors (FPIs) had embarked up on a major selling spree since May 12 in both cash as well as derivative segments. They sold stocks worth Rs 25,000 crore. Huge short built-up was seen in Nifty and Bank Nifty indices.

Published on June 04, 2020
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