Trading across segments was halted at 11.40 am due to “issues with the links with telecom service providers”, according to the NSE. The bourse said it depends on two telecom service providers for connectivity, and both failed simultaneously resulting in the outage.
Here is what analysts said about the NSE technical glitch:
Jimeet Modi, CEO & Founder, Samco Ventures Pvt Ltd.
The biggest question in this whole issue is why was the entire market shut just because index feeds were not refreshing? Feeds for underlying contracts were fine and so was order matching; so why shut down the entire market?
Ajay Srivastava, CEO, Dimensions Corporate Finance
Even the US systems have gone down in the past. This one was a little peculiar because it started with just the glitch on updation. There were no trading glitches. It is very peculiar that they shut the market down when just the indices were not showing up.
Anand James, Chief Market Strategist at
Expiry eve is a crucial day for expiry-related trades as time decay sets in. As indices froze a little after 10 am, F&O trades that reference such benchmark indices also slowed down. With hardly an hour’s trade possible for such index-based traders, the higher margins on F&O positions may have been a double whammy. Towards this end, the BSE being open may not have been much solace, but certainly a backup avenue for cash traders.
Vinod Nair, Head of Research at Geojit Financial Services
Technical glitch did not impact domestic market sentiment though volatility was high with a positive prejudice in the first session. During the extra session, the market gathered more strength and hugely outperformed the global peers, triggered by squaring-off F&O positions a day ahead of the prefixed monthly expiry date. The global market was mixed, not very convinced that world central banks like the Fed will maintain a flexible monetary policy even during rising bond yield and inflation. The Asian market was negatively impacted by a hike in stamp duty on equities.
Ajit Mishra, vice-president, research at Religare Broking to Reuters
I can’t recall trading hours having been extended like this in the past decade. The move (to extend the trading hours) will be welcomed as people were completely stuck ahead of the derivatives expiry.
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