Some stock and index options on India’s National Stock Exchange (NSE) stopped updating at a time when cash shares surged after the Governor Raghuram Rajan-led Reserve Bank of India (RBI) unexpectedly cut interest rates, five traders said.
An NSE spokesman said there was “no problem” from the exchange’s end regarding options prices.
“There are some problems with Bank Nifty options. Premiums are not updating. We indicated this to the exchange,” said a trader with an Indian brokerage.
The NSE bank index rose as much as 4.3 percent to life high of 19,410.40 after the Reserve Bank of India cut interest rates on Thursday by 25 basis points to 7.75 percent in a surprise move.
The Reserve Bank of India cut its repo interest rate by 25 basis points to 7.75 percent in a surprise move on Thursday, making its first reduction in a year as inflation showed signs of slowing and the government was making efforts to contain the fiscal deficit.
The RBI added it could cut interest rates further should inflation continue to ease, while it would also monitor the government’s progress on fiscal consolidation.
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