Today 10th July morning NSE India has to stop trading due to major technical glitch. This NSE India technical glitch is a major setback for the traders and investors as well as for the NSE exchange who is proposing to come up with their IPO very soon. You can see their IPO filing status in our upcoming issues page.
What happened today morning?
Monday morning is usually a busy day for the traders and brokers being the first day of the week. Today also traders were ready by 9:00 and the pre-market session started normally at 9:00 AM. Trading started at 9:10 AM. Initially, traders could not figure out the problem. Zerodha, a leading broker, sent messages to their clients that there is an issue with the data feeds. Till then the full NSE India technical glitch was not revealed.
FNO trades were getting executed normally. Then it was noted that equity cash trades are not happening. Their is a major gap between bid and offer prices. Many cases even the offer prices have been quoted lower than the bid prices. You can check an instance in the image below.
Trading got halted and the NSE exchange was shut down at 9:55 AM. NSE announced that new pre-market session will start at 10:30 and the normal market will start at 10:45. If failed again. Next announcement was that pre-market session will start from 11:00 AM and the normal market will start from 11:15 AM. Once again trading failed.
Now when I am writing the post, NSE has again announced that pre-market session will start from 12:15 PM and normal market will start from 12:30 PM.
Effect of the NSE India technical glitch:
By the time trading halted at 9:55 AM about 77000 crores worth trading was already done in FNO. Suppose a person has shorted Divis Lab at open the trading stopped due to the technical issue. After that and a news came the stock can open 9%-10% higher in the new session. This type of situation can create major losses for the traders. There is an investor protection fund with all exchanges as regulated by SEBI. Now, how the exchange handles the technical glitch we need to wait and watch.
Indrajit is a professional blogger and trading system developer. Amibroker expert, WordPress expert, SEO expert and stock market analyst.Trading since 2002, he has started the journey of StockManiacs.net on 2008. He follows Indian and world stock markets closely.