Tag: Nifty

Failure at NSE clearing arm led to Feb outage, says RBI – Times of India

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MUMBAI: In a revelation, the RBI on Friday said that shutting down of the system at NSE Clearing (NCL) had led to the day-long trading blackout at the bourse on February 24.
Since the trading halt on NSE, the country’s largest exchange, it was believed that the trouble originated at two telecom service providers that led to stoppage of trading. The trading session was extended by one and half hours till 5pm to mainly help investors limit their losses after consultations among the government, Sebi, NSE and BSE, depositories and clearing corporations.
The major issue was the ineffectiveness of interoperability because of shutting down of the NCL, the RBI said in its ‘state of the economy bulletin’. “While NSE’s trades are cleared by NCL, trades on the BSE are cleared through Indian Clearing Corporation. In 2018, Sebi had announced interoperability between these two clearing corporations to help brokers consolidate their clearing and settlement functions at a single clearing house, irrespective of the stock exchange on which the trade is executed,” the central bank said in the report.
During the February 24 trading outage, NSE said that it had “multiple telecom links with two service providers to ensure redundancy and we have received communication from both the telecom service providers that there are issues with their links due to which there is an impact on the NSE system”.
“Another important failure was the inability to switch operations to the disaster recovery site,” the RBI said. “Robust risk management system encompassing disaster management and recovery are essential components for the smooth functioning of a stock exchange,” it noted.
The central bank also flagged that according to brokers, timely communication and clarification (from the NSE) could have averted the panic selloff by online traders on the BSE and prevented huge losses to investors.
Allowing Nifty and the sensex to trade on all the stock exchanges, extension of interoperability to include usage of trading infrastructure of another exchange and allowing entry of more exchanges to increase competition may need to be considered, besides focusing on strengthening of risk management frameworks at the exchanges,” the RBI noted.
A day after the NSE’s trading blackout, Association of National Members of India, a pan-India association of brokers had suggested that contracts on Nifty and the sensex should be allowed to be traded on both the leading bourses of India. Currently, while Nifty is traded only on the NSE, the sensex is traded only on BSE.
After the NSE blackout, finance minister Nirmala Sitharaman had said that it had cost the country and lessons were being learnt. Around the same time Sebi also set up a technical committee for a ‘root cause analysis’ of the failure.

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Market stages sharp recovery; Sensex rebounds 642 points

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Snapping its five-session losing streak, equity benchmark Sensex rebounded 642 points on Friday, led by gains in index majors RIL, HUL and ICICI Bank despite negative cues from global markets.

After opening with significant losses, the 30-share BSE index made a U-turn to end 641.72 points or 1.30 % higher at 49,858.24. The broader NSE Nifty surged 186.15 points or 1.28 % to finish at 14,744.

NTPC was the top gainer in the Sensex pack, rallying over 4 %, followed by HUL, PowerGrid, Reliance Industries, ITC, UltraTech Cement and Bajaj Finance.

On the other hand, L&T, Tech Mahindra, Bajaj Auto and Titan were among the laggards.

“Despite weak global cues, domestic equities recovered sharply today after five days of back-to-back fall,” said Binod Modi, Head – Strategy at Reliance Securities.

Notably, a sharp recovery in FMCG, pharma, metals and Reliance Industries helped benchmark indices to recover from initial losses.

Moderate contraction in bond yields offered support to domestic equities despite prevailing concern of rise in daily COVID-19 cases, he said, adding that the recent spike in new infections is unlikely to dent the improved prospects of economic recovery meaningfully.

Elsewhere in Asia, bourses in Shanghai, Hong Kong, Tokyo and Seoul ended on a negative note.

Stock exchanges in Europe were also trading with losses in mid-session deals.

Meanwhile, the global oil benchmark Brent crude was trading 1.36 % higher at USD 64.14 per barrel.

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Sensex tanks over 600 points in early trade; Nifty slips below 14,400

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ONGC was the top loser in the Sensex pack.

Equity benchmark Sensex tanked over 600 points in early trade on Friday, tracking losses in HDFC Bank, L&T and Reliance Industries amid negative cues from global markets.

The 30-share BSE index was trading 617.10 points or 1.25 % lower at 48,599.42, and the broader NSE Nifty fell 201.35 points or 1.38 % to 14,356.50.

ONGC was the top loser in the Sensex pack, slumping around 5 %, followed by L&T, Bajaj Finance, M&M, Maruti, SBI, Titan, HDFC twins and Reliance Industries.

On the other hand, Kotak Bank, Bharti Airtel and PowerGrid were the gainers.

In the previous session, Sensex ended 585.10 points or 1.17 % lower at 49,216.52, and Nifty slumped 163.45 points or 1.11 % to 14,557.85.

Foreign institutional investors (FIIs) were net buyers in the capital market on Thursday as they bought shares worth ₹ 1,258.47 crore, as per exchange data.

Domestic equities do not look inspiring for the day. Intensifying concerns pertaining to the recent surge in coronavirus cases in various parts of the country have clearly dented investors’ sentiments in domestic markets, said Binod Modi Head-Strategy at Reliance Securities.

Further, a sharp spike in USA treasury yields and inflationary concerns also weighed on sentiments, he noted.

“US equities finished sharply lower yesterday as investors dealt with twin threats of rising bond yields and sliding oil prices. 10-Year US Treasury yield surged 9 bps on Thursday to 14-month high to 1.73 % despite Federal Reserve maintaining its dovish stance on interest rates,” Mr. Modi added.

Elsewhere in Asia, bourses in Shanghai, Hong Kong, Tokyo and Seoul were trading on a negative note in mid-session deals.

Meanwhile, the global oil benchmark Brent crude was trading 0.16 % higher at USD 63.38 per barrel.

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The Nifty and the Sensex opened the day on a

Join us as we follow the top business news through the day.

9:30 AM

Delhi HC stays Future on Reliance deal

In a major victory for U.S.-based e-commence giant Amazon, the Delhi High Court on Thursday ruled that Future Retail Limited (FRL) and its promoters including Kishore Biyani “deliberately and wilfully” violated the order of an emergency arbitrator (EA) restraining FRL from going ahead with its assets sale deal with Reliance Retail.

Noting that the intention of FRL and its promoters “do not appear to be honest”, the high court directed attachment of the assets of Future Coupons Private Limited (FCPL), FRL, Mr. Biyani and 10 other promoters.

Justice J.R. Midha also directed Mr. Biyani and the other promoters to be present before the court on the next date of hearing on April 28. It additionally issued show-cause notices to all the promoters “to show cause why they be not detained in civil prison for a term not exceeding three months” for violation of the emergency arbitrator’s order.

 

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Sensex Sinks for 5th Day as Second Covid-19 Wave Fears Outweigh Dovish Fed

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Equity benchmarks spiralled lower for the fifth consecutive session on Thursday as a resurgence in COVID-19 cases in multiple states fanned fears of a second wave of the pandemic, even as global markets darted up after the US Fed reiterated its dovish stance. After rallying nearly 500 points earlier in the day, the 30-share BSE Sensex succumbed to selling pressure in afternoon trade to close at 49,216.52, down 585.10 points or 1.17 per cent. Similarly, the broader NSE Nifty slumped 163.45 points or 1.11 per cent to finish at 14,557.85.

The Sensex has now lost 2,062.99 points in five sessions, while the Nifty has shed 616.95 points. After rising for the past few days, IT stocks bore the brunt of profit-booking in Thursday’s session. HCL Tech was the top loser in the Sensex pack, shedding 3.97 per cent, followed by Infosys, Dr Reddy’s, TCS, Tech Mahindra, Reliance Industries and NTPC.

On the other hand, ITC, Bajaj Auto, M&M, Maruti and Bharti Airtel were among the gainers, rising up to 3.25 per cent. Traders said rising COVID-19 cases in various parts of the country and reimposition of localised restrictions have unnerved investors. “Having seen a brisk gap-up opening on positive global cues, domestic equities fell sharply for the fifth consecutive day as sharp rise in coronavirus cases in the country made investors jittery. The mounting concerns of possible fresh economic restrictions made enthusiasm of dovish commentary from Federal Reserve short lived for domestic markets.

“Additionally, a fresh spike in 10-year US Treasury yield to 1.72 per cent also weighed on investors’ sentiments. Notably, investors’ wealth got eroded by over Rs 3 lakh crore today and around Rs9 lakh crore in last five trading days,” said Binod Modi, Head Strategy at Reliance Securities. BSE IT, teck, energy, healthcare, realty and capital goods indices lost as much as 3.02 per cent, while telecom and FMCG managed to finish higher. Broader BSE midcap and smallcap indices fell up to 1.58 per cent.

After its two-day policy meeting, the US Federal Reserve reassured investors that it expects to keep its key interest rate near zero through 2023, as it projected robust growth of the US economy this year. Stock exchanges on Wall Street ended with gains in the overnight session. Elsewhere in Asia, bourses in Shanghai, Hong Kong, Tokyo and Seoul ended on a positive note. Bourses in Europe were also trading higher in mid-session deals. However, a spike in US treasury yields cast a cloud over global market sentiment.

Meanwhile, the global oil benchmark Brent crude was trading 0.40 per cent lower at USD 67.73 per barrel. The rupee erased some of its initial gains to end 2 paise higher at 72.53 against the US dollar. Foreign institutional investors remained net buyers in the capital market as they bought shares worth Rs 2,625.82 crore on Wednesday, according to exchange data.

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Sensex tumbles 585 points; Nifty drops below 14,600

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Extending its losing streak to the fifth consecutive session, equity benchmark Sensex tanked 585 points on Thursday, tracking losses in index majors Infosys, RIL and TCS.

After rallying nearly 500 points earlier in the day, the 30-share BSE index gave up all gains to end 585.10 points or 1.17% lower at 49,216.52. The broader NSE Nifty slumped 163.45 points or 1.11% at 14,557.85.

HCL Tech was the top loser in the Sensex pack, shedding around 4%, followed by Infosys, Dr Reddy’s, TCS, Reliance Industries, Tech Mahindra and NTPC.

On the other hand, ITC, Bajaj Auto, M&M, Maruti and Bharti Airtel were among the gainers.

“Having seen a brisk gap-up opening on positive global cues, domestic equities fell sharply for the fifth consecutive day as sharp rise in coronavirus cases in the country made investors jittery,” said Binod Modi, Head Strategy at Reliance Securities.

A sharp rise in daily COVID-19 cases in India has raised apprehensions about sustainability of ongoing rebound in corporate earnings, he noted, adding that the mounting concerns of possible fresh economic restrictions made enthusiasm of dovish commentary from Federal Reserve short lived for domestic markets.

After its two-day policy meeting, the U.S. Fed reassured investors that it expects to keep its key interest rate near zero through 2023.

Stock exchanges on Wall Street ended with gains in the overnight session.

Elsewhere in Asia, bourses in Shanghai, Hong Kong, Tokyo and Seoul ended on a positive note.

Bourses in Europe were also trading higher in mid-session deals.

Meanwhile, the global oil benchmark Brent crude was trading 0.40% lower at $67.73 per barrel.

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Sensex Tumbles 585 Points; Nifty Drops Below 14,600

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Extending its losing streak to the fifth consecutive session, equity benchmark Sensex tanked 585 points on Thursday, tracking losses in index majors Infosys, RIL and TCS. After rallying nearly 500 points earlier in the day, the 30-share BSE index gave up all gains to end 585.10 points or 1.17 per cent lower at 49,216.52. The broader NSE Nifty slumped 163.45 points or 1.11 per cent at 14,557.85.

HCL Tech was the top loser in the Sensex pack, shedding around 4 per cent, followed by Infosys, Dr Reddy’s, TCS, Reliance Industries, Tech Mahindra and NTPC. On the other hand, ITC, Bajaj Auto, M&M, Maruti and Bharti Airtel were among the gainers.

“Having seen a brisk gap-up opening on positive global cues, domestic equities fell sharply for the fifth consecutive day as sharp rise in coronavirus cases in the country made investors jittery,” said Binod Modi, Head Strategy at Reliance Securities. A sharp rise in daily COVID-19 cases in India has raised apprehensions about sustainability of ongoing rebound in corporate earnings, he noted, adding that the mounting concerns of possible fresh economic restrictions made enthusiasm of dovish commentary from Federal Reserve short lived for domestic markets.

After its two-day policy meeting, the US Fed reassured investors that it expects to keep its key interest rate near zero through 2023. Stock exchanges on Wall Street ended with gains in the overnight session.

Elsewhere in Asia, bourses in Shanghai, Hong Kong, Tokyo and Seoul ended on a positive note. Bourses in Europe were also trading higher in mid-session deals.

Meanwhile, the global oil benchmark Brent crude was trading 0.40 per cent lower at USD 67.73 per barrel.

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As Cases Spike, Is Indian Stock Market Dipping in Caution of a Second Wave of Coronavirus?

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As Covid-19 cases rise again in India and experts point towards chances of a second wave, especially in states like Maharashtra and Madhya Pradesh, stock markets have started materialising the sense of fear.

A cautious trade by global investors ahead of the US Federal Reserve meet is also among the reasons why markets fell most in over two weeks, ending lower for the fourth consecutive day amid high volatility.

Indian benchmark indices ended in negative territory on Wednesday amid selling seen in across the sectors. At close, the Sensex was down 562.34 points or 1.12 per cent at 49,801.62, and the Nifty was down 189.20 points or 1.27 per cent at 14,721.30. About 2,115 shares declined, and 138 shares are unchanged.

All the sectoral indices ended in the red with Nifty PSU Bank index falling 4 per cent. BSE Midcap and Smallcap indices shed 2 per cent each.

Economists at Nomura believe that the second wave of Covid-19 in India can lead to near-term growth concerns and delay market expectations on the timing of policy normalisation. “However, we expect only marginal negative growth effects, because government restrictions are less stringent, the goods sector continues to chug along and households and businesses have adjusted to the new normal,” Sonal Varma and Aurodeep Nandi, economists, Nomura said in a note on March 16.

To get perspective on what Indian markets looked like when the first wave hit, there were only four initial public offerings worth $2.08 million in June quarter, according to an EY report.

All the IPOs were in the Small and Medium Enterprises (SMEs) segment and the median deal size was $0.38 million.

Sandip Khetan, Partner and National Leader of Financial Accounting Advisory Services (FAAS) at EY India, had said the experience in the last three months was unprecedented.

As per the report, in the SME market, there were four IPOs versus 14 and 11 in Q2 2019 and Q1 2020, respectively.

Prime Minister Narendra Modi on Wednesday said it was crucial to contain the “emerging second peak” of coronavirus with steps such as setting up of micro-containment zones and enforcement of restrictions amid a surge in cases across the country.

Speaking at a meeting with chief ministers, PM Modi said: “If we don’t stop this pandemic right now, then there could be a nationwide outbreak. We have to immediately stop the emerging second peak and take big and decisive steps.”

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Sensex tanks 562 pts; Nifty cracks below 14,800

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Dropping for the fourth straight session, equity benchmark Sensex tumbled 562.34 points on Wednesday following losses in index majors Reliance Industries, HDFC Bank and ICICI Bank amid a weak trend in global markets ahead of the US Federal Reserve’s policy outcome.

After a volatile session, the 30-share BSE index tanked 562.34 points or 1.12 % to close at 49,801.62. The broader NSE Nifty slumped 189.15 points or 1.27 % to 14,721.30.

ONGC was the top loser in the Sensex pack, declining around 5 %, followed by NTPC, Sun Pharma, SBI, IndusInd Bank, Bajaj Auto, PowerGrid and Reliance Industries.

On the other hand, ITC, Infosys, TCS and HDFC were among the gainers.

Domestic equities dropped for the fourth consecutive day as concerns pertaining to recent rise in COVID-19 cases in various parts of the country and high inflation continued to weigh on investors’ sentiments, said Binod Modi, Head-Strategy at Reliance Securities.

Additionally, he noted that weak cues from global markets ahead of the US Federal Reserve meeting outcome caused selling in domestic equities. The two-day meet started on Tuesday.

All key sectoral indices witnessed selling pressure with PSU banks, metals and auto indices witnessing steep correction.

Elsewhere in Asia, bourses in Shanghai, Tokyo and Seoul ended on a negative note, while Hong Kong was in the positive terrain.

Stock exchanges in Europe were largely trading in the red in mid-session deals.

Meanwhile, the global oil benchmark Brent crude was trading 0.89 % lower at USD 67.78 per barrel.

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