Sensex goes haywire after Friday glitch; BSE cancels 1,350 trades
16 Jul 2011
The Bombay Stock Exchange on Friday cancelled about 1,350 trades done during early trading – called the 'pre-open session' after a technical glitch saw several frontline stocks fluctuating wildly.
Stocks like Tata Consultancy Services (TCS), Reliance Industries, HDFC Bank, and State Bank of India witnessed major swings that unnerved a number of traders. "Following a technical glitch in the trading system, BSE announced annulment of certain trades and orders," a release from the bourse said.
The 30-share Sensex gained over 1,000 points or 5.37 per cent on commencement of the normal trading session. The Sensex, which closed at 18,618.20 points on Thursday, touched an intraday high of 19,619.65 in the early morning trade.
The pre-open session usually tends to be wild amid thin trading, so traders were not alarmed initially when TCS stocks gained some 20 per cent, but after that things started getting weird.
The index finally ended the trading session at 18,561.92, down 52 points or 0.30 per cent.
According to reports, the trade orders placed during the markets pre-opening session did not get matched and was subsequently carried forward to the normal market session, resulting in huge spike in share prices and index value.