NSE trading resumes three hours after 'technical glitch'

The NSE handles about twice the stock volume of rival BSE Ltd and controls about 80% of India’s derivatives market which is among the world’s largest

"After the technical delay in NSE, the broad market rose to new heights supported by IT and pharma stocks which rose on the heels of positive United States job data", said Vinod Nair, Head of Research, Geojit Financial Services. Incidentally, the glitch comes at a time when the exchange is in the midst of a regulatory probe related to co-location and algorithmic trading.

As per the NSE website, the cash segment saw trading worth ₹6,255 crore on Monday.

The key stock exchange has attributed the problem to a technical glitch, vowing to resolve the issue as soon as possible. There have been instances earlier also when the NSE and the BSE have faced trading problems.

The NSE was able to resume trading for cash, as well as stock indexes and futures, when markets re-opened at midday, but multiple dealers said individual stocks were not updating normally or were suffering wide gaps in bid and offer prices. Two sources familiar with the matter said it was an internal issue, ruling out any external cyber attack or hacking.

In the afternoon, Sebi said it was closely monitoring the situation. A combined 579,483 shares changed hands on the counter on BSE and NSE so far.

However, a technical problem at the NSE created problems during the day. Also, NSE to submit report to SEBI on glitch. Operations finally resumed at 1230 hours.

The Finance Ministry has sought a report from SEBI on this issue.

The regulator has also asked the exchange to have a review of their "Business Continuity Plans" as well as submit a detailed plan on the measures that are going to be taken to avoid such recurrences.

"We have a target of 32,000 for the Sensex by the end of the year, and probably, we could end breaching the level", said Rajen Shah, Chief Investment Adviser, Tradebulls.

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