NSE Turnover Declines 48% On Technical Snag

Mumbai, Nov 10: | Updated: Nov 11 2003, 05:30am hrs
Turnover on the National Stock Exchange (NSE) dipped by over 48.26 per cent to Rs 2,531 crore on Monday as compared to Fridays turnover of Rs 4,891.66 crore, as a major portion of scheduled trading time on the NSE was lost due to a technical snag.

Trading on the NSE was halted for 95 minutes between 11:25 pm to 1:00 pm, after over 90 per cent of the total members failed to establish connectivity in the morning hours. However, suprisingly, NSE didnt extend the trading time beyond the scheduled close of 3:30 pm to make-up for the time lost. Explaining the reason, for not extending the trading hours despite the time lost due to a technical snag, NSE official said; sufficient time was still available for trading after the snag was rectified.

The official said, some members were facing login problems in the morning, so we decided to halt trading and solve the problem. Meanwhile, trading on the rival exchange, The Stock Exchange, Mumbai (BSE) was normal. Meanwhile, the turnover on BSE was Rs 2,489.19 crore as compared to Fridays turnover of Rs 2,312.56 crore.

The total volume on NSE also dipped sharply to 15.54 crore shares as against Fridays volume of 33.22 crore shares. The technical snag had a big impact on the derivatives segment too. The derivatives turnover on NSE dipped to Rs 6,205.80 crore as compared to Fridays turnover of Rs 9,199.76 crore.

Said a chief dealer at a domestic brokerage house: In morning trades, there might be some panic following the connectivity problem on the NSE and select investors resorted to square-off on the BSE. But broadly, a technical snag doesnt weigh heavily on the market. If there is no urgency, big players avoid trading.