Share Market Updates

Nifty, the National Stock Exchange index suddenly sank by over 900 points in a matter of minutes to a session low of 4,888.20 points, 15.5% below Thursday’s close, after Emkay Global Financial Services placed dozens of erroneous orders worth more than $125 million, reported Reuters. Trading in Nifty was stopped at 9:49 a.m. in Mumbai for 15 minutes. The National Stock Exchange of India said 59 erroneous orders prompted a plunge in equities that briefly erased about $58 billion in value, underscoring the growing global concern about the integrity of financial markets. The sudden collapse shook nerves of Share Market traders & investors alike. Analysts had already expected a session of falls after the impact on Equity Markets from India’s latest reform measures, targeting the insurance and pension sectors, was expected to fade. Traders expressed concerns the financial measures announced on Thursday would face an uncertain fate in parliament. The 50-share Nifty fell 0.7%, or 40.65 points, to end at 5746.95 points, having hit its highest Intraday level since April 28 2011 shortly after trading resumed after the halt. The drop in the Nifty comes after a powerful run, with the index gaining 0.8% for a fifth consecutive weekly gain. The BSE-Sensex fell 0.63%, of 119.69 points, to end at 18,938.46 points after earlier in the session hitting its highest Intraday level since May 2 2011. BSE Sensex added 0.94% for the week. Mortgage lender HDFC dropped 5% after Carlyle Group sold a 3.7% stake for $841 million at a 3.5% discount to Thursday’s closing share prices. The volume of stocks in the benchmark index that were traded today almost doubled from the 100-day average, according to data compiled by Bloomberg.