Trading on the NSE was halted at 11:40 am today because of a technical glitch. Market hours have now been extended till 5:00 PM on the BSE and the NSE.

Share Market Live

NSE

Why did the NSE halt trading?

Stock prices and the levels of Bank Nifty were not updating since 11 in the morning. At 11:40, the NSE said it was halting trading to fix the glitch.

What caused the glitch?

The NSE said that the problem has been caused due to issues at two telecom service providers which provide telecom links to the exchange.

Is the BSE operational?

Yes, trading on the BSE has not been affected.

What happens to trades done before trading was halted?

There is no clarity at this point, but market experts say the trades that have already been executed will stand. Pending orders in the system, however, will be cancelled when trading resumes, and all brokers will have to put in fresh trades. That is usually the standard operating procedure.

Which category of market players stand to be affected the most?

Day traders in the cash market as well as those dealing in futures and options contracts will be affected the most. Of course, it will depend where the prices are when trading resumes. The risk for F&O traders is all the higher because tomorrow (Thursday) is the expiry of the current month contracts. Traders who want to roll over their positions to the next settlement cycle typically start doing a day or two before expiry. Because of the trading glitch, many traders would not have been able to roll over their positions from this settlement cycle. Unless SEBI or NSE gives additional time, there will be a scramble to unwind/rollover positions, when trading resumes.

In addition, the mood in global markets too influence stock prices in India. If there is a sharp move in the European/US markets, it will sway sentiment on the BSE and NSE.

How will the trading halt impact cover orders?

Clients who have put in cover orders, could be hit harder than other players with outstanding positions, if the price moves against them. It will hurt the brokers as well through whom the orders were placed. A cover order is a market order that is placed along with a stop loss order. The margins to be deposited with the stock exchanges on orders are lower compared to other trades, since the stop loss acts as a floor for the maximum loss that can be incurred on the trade. In the normal course of things, the stop loss would have come into play and limited losses. But now, there is a possibility that prices could breach the stop loss levels in many stocks when trading resumes.

Has the NSE said when trading will resume?

In an unprecedented announcement, the BSE and the NSE have decided to extend market hours till 5:00 pm today (Wednesday).

(This copy will be updated when we get fresh information from the NSE)

(Edited by : Abhishek Jha)