Sensex logs 1st drop in 5 days after BSE's 3-hour outage hits trading

Written by PTI | Mumbai | Updated: Jul 4 2014, 02:58am hrs
BSE SensexBSE suffered a glitch in the connectivity system due to a network outage. (AP)
The BSE benchmark Sensex today almost scaled the record 26,000 level but profit-booking in oil&gas, metal and power shares dragged it down to log the first drop in five days even as trading on the BSE was disrupted for three hours due to network outage.

The S&P BSE Sensex closed at 25,823.75, down 17.46 points from yesterday's close, after hitting life-time high of 25,999.08. Trading was halted at BSE from 9.42 AM for about three hours due to network outage.

Weakness in shares of RIL, ONGC, Hero MotoCorp, Bajaj Auto, Maruti Suzuki, SBI and ICICI Bank weighed on the Sensex.

Out of 30-share pack, 19 ended lower and 11 finished higher.

Intra-day, the Sensex hit a low of 25,793.70.

The index had gained over 778 points in the previous four days on rising hopes of a growth-oriented Budget next week.

The NSE 50-share Nifty today moved down 10.35 points, or 0.13 per cent, to finish at 7,714.80 after hitting all-time high level of 7,754.65 in early trade.

"Markets were seen making a positive start on Thursday, extending its northward journey as sentiments got some support from Agriculture Minister's statement that monsoon will pick up pace next week and the government is prepared to deal with any eventuality in case of a shortfall.

"However, soon the index entered into negative terrain and then kept trading with negative bias as investors opted to book profits," said Jayant Manglik, President-retail distribution, Religare Securities.

Foreign portfolio investors (FPIs) bought shares worth a net Rs 1290.68 crore yesterday as per provisional data.

Asian stocks ended mixed before US jobs reports and a Euro-area monetary-policy decision. Key benchmark indices in Hong Kong, South Korea, Hong Kong and Japan declined by 0.08-0.21 per cent while indices in China, Singapore and Taiwan moved up by 0.19-0.44 per cent.

However, European markets were trading higher. Key indices in France, Germany and the UK moved up 0.42-0.48 per cent.

Commenting on Indian markets, Jignesh Chaudhary, Head of Research, Veracity Broking Services said: "FIIs continued to be on the buying side which helped local markets to touch new milestones."

Major Sensex losers included Hero Motocorp (3.17 per cent) Hindalco (2.47 per cent), Bajaj Auto (2.39 per cent), ONGC (1.99 per cent), Tata Power (1.88 per cent), NTPC (1.19 per cent), Reliance Industries (1.09 per cent), HUL (1.07 per cent) and Tata Steel (0.80 per cent).

However, Tata Motors rose 3.03 per cent, followed by Wipro 2.58 per cent, Sun Pharma 1.79 per cent, M&M 1.41 per cent and TCS 0.86 per cent.

Among the S&P BSE sectoral indices, Realty fell by 1.47 per cent, Oil&Gas 1.19 per cent and Power 0.86 per cent while Healthcare rose by 1.12 per cent, Auto 0.80 per cent, Consumer Durables 0.59 per cent and Metal 0.55 per cent.

Market breadth remained positive as 1,475 stocks finished with gains while 1,287 stocks ended lower. Total turnover dropped sharply to Rs 1,429.99 crore from 4,315.78 crore yesterday.

Read Bombay Stock Exchange Reaction:

BSE Network Outage and Consequent Market Closure on July 3,2014

Today, On July 3, 2014 BSE faced network related issues. Several users were logged out abruptly due to misbehavior of some of the network components in the BSE network. BSE network connects to more than 10,000 primary connections with all telecom vendors in India participating in the network in addition to BSEs own LAN network and VSAT network provided by Hughes.

Every day, more than 8,000 connections log in. Each primary connection can potentially have several tens of users to several thousand users depending on the member convenience and their own network configurations. At 9.42 AM on July 3,2014, the number of primary connections had come down to less than 2000 and hence market needed to be closed as per current regulations applicable to closure of markets.

BSE and its network technology (equipment and service) providers worked in coordination to identify, isolate and resolve the problem. Experts from US and other support locations also worked throughout the period to resolve the problem.

The problem was resolved by 12.15 PM today before the market could be started from Disaster Recovery Site located at Dhirubhai Ambani Knowledge City (DAKC). As the problem was resolved, after initial testing, it was decided to start the market from current production site located at BSE building. Subsequently, the currency market started at 12.34 PM, equity derivatives market started at 12.36 PM and equity market started at 12.45 pm. Equity market had pre-open period from 12.37 pm to 12.45 PM.

The market closure duration therefore from 9.42 AM till 12.45 was approximately 3 hours and 3 minutes.

As per the pre-defined process, BSE, HCL Comnet and CiSCO will prepare a root cause analysis, present to BSEs Technology Advisory Committee consisting of IT heads of various companies, market experts and academics. Subsequently, the same will be presented to BSEs Board of Directors, as well as the Regulator SEBI. The Root Cause Analysis report will contain the details of the incident, the reasons for the same, how it was repaired, steps suggested and being undertaken with timelines to eliminate recurrence of such a specific event or similar events.

BSE management is acutely aware of the need to operate the markets on continuous basis with minimum market disruption. It has taken all the steps required to achieve this objective and will continue to take all actions necessary to ensure that the markets function without any disruption in future.

We place on record with gratitude for the phone calls, text messages and emails received from various market participants including media personnel for expressing their concern and support during this difficult time. We also profusely thank all the trading members and all investors who have shown patience with this market closure.

Indian shares edge down after hitting record highs

(Reuters) - Indian shares fell slightly on Thursday, retreating from record highs hit earlier in the session, as investors snapped a four-day rally by booking profits in recent outperformers such as Hindalco Industries .

Trading was marred after exchange operator BSE Ltd, which operates the benchmark BSE index, suffered around a three-hour trading halt because of a network outage.

Shares have surged this year - with the broader NSE index up 22.4 percent so far - on hopes Narendra Modi's election as prime minister last month would spark a wave of economic reforms.

A key test of that will come on July 10, when the new government is expected to unveil the budget. Foreign investors have remained strong buyers throughout, buying a net 12.90 billion rupees ($215.7 million) worth of shares on Wednesday and bringing their total for the year to $10.34 billion.

"Market is awaiting the next big event which is budget. The broader sentiment is positive, so we advise our clients to stay with the market, but stay cautious. Volatility would be very high as we approach the budget," said Daljeet S Kohli, head of research at brokerage, IndiaNivesh.

The BSE index fell 0.07 percent to end at 25,823.75 after hitting its record high of 25,999.08. It had gained 3.11 percent over the previous three sessions.

The broader NSE index fell 0.13 percent to end at 7,714.80 after hitting its life high of 7,754.65. It had gained 3.1 percent over the last four sessions.

Recent outperformers fell on profit-booking. Hindalco Industries Ltd, which gained 10.8 percent in the past three sessions, fell 2.52 percent.

Power and capital goods stocks, which were the major contributors to the recent rally, ended lower. NTPC Ltd closed down 1.5 percent, while Tata Power Ltd fell 2.3 percent.

Among other blue-chips, Reliance Industries Ltd closed 1.2 percent lower, while Oil and Natural Gas Corp ended down 2 percent.

Shares in GMR Infrastructure Ltd closed down 7.7 percent and Jaiprakash Associates Ltd ended 4.6 percent lower after both companies raised a total of about $550 million, through a share sale, which was at a discount to the market price.

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