Trading at the NSE was halted yesterday for most of the normal trading hours post 11:40 A.M. due to technical glitches. The issue started sometimes post 10 A.M as tickers for all indices including the Nifty stopped getting updated. However at 11:40 A.M trading was halted for both the cash and F&O segment on the NSE though the BSE continued to function normally.
Trading was suspended on the NSE for the rest of the normal trading hours which is bound to have caused serious concerns for investors and traders. What compounded the situation further was that it happened on the penultimate day of the February F&O expiry. The last two days of expiry witness significant increase in F&O volumes due to rollover and squaring off activities, and any disruption in trading during the period is bound to cause inconvenience to all market participants.
The NSE remained shut even as the last 30 minutes of trading commenced at 3:00 P.M. which led to few of other large brokerages taking a call to square off their client’s intraday cash position on the BSE. While it is possible for NSE intraday cash positions to be squared off on the BSE, the same is not possible for F&O positions which would need to be squared off on the NSE.
As we approached the end of regular trading hours yesterday, we knew that there was a high possibility that the NSE will provide a window for squaring off intraday cash and F&O positions, especially in the back drop of February F&O series expiry. Therefore we at Angel One took a call to wait for communication from the exchanges and SEBI rather than square off all intraday cash positions on the BSE.
We relied on our decades of experience and understanding of the markets and anticipated the exchange’s move to extend the trading hours. We were proven right as the NSE announced a few minutes post 3:15 P.M that they will be providing a trading window between 3:45 P.M. to 5:00 P.M. While there was some pressure on the markets post resumption of trade, markets reversed the trend almost immediately and started rallying. Post the initial sell off we witnessed a continued surge in the markets driven by the Bank Nifty as the FM lifted an embargo on Government business for private sector banks. The Nifty finally closed the day at 14,982 up by 1.86% for the day while the Bank Nifty was up by 3.8% for the day.
Due to our decision of not squaring off intraday cash positions on the BSE our clients were able to square off their positions at much better rates on the NSE in the last 15 minutes of trade between 4:45 to 5:00 PM. We at Angel One have always believed in keeping our clients interest first and yesterday proved to be no different. We would like to take this opportunity to thank our customers for keeping their faith in us and for continuing to make our business a success.