Day After NSE Disruption, India Stocks Advance on Expiry Day

India’s key equity indexes rose on the expiry day of monthly derivative contracts marking the third straight session of gains.

The NSE Nifty 50 Index climbed 0.8% to 15,097.35 in Mumbai, a day after the bourses had to extend trading hours to help investors square off positions, following the longest-ever outage at the National Stock Exchange. The S&P BSE Sensex advanced 0.5%.

Market regulator Securities and Exchange Board of India has asked the exchange to carry out a detailed root-cause analysis of the halt and explain why trading didn’t migrate to its disaster recovery site.

Telecom instability affected the NSE’s online risk management system, and its unavailability meant the market couldn’t function and had to be shut down, the NSE said in a statement Thursday. The world’s biggest derivatives exchange by the number of contracts, said that it is awaiting detailed analysis from service providers and vendors.

The disruption led to a 141% jump in total options volume on Thursday and was double the average jump in volumes seen on expiry day in the last four months, data compiled by Bloomberg show.

“Short covering by investors today, following the trading disruptions in the last session, led to a jump in volumes,” said Nagaraj Shetti, technical research analyst at Mumbai-based HDFC Securities Ltd. “The market remains poised for a strong upside with buying opportunity at every decline.”

The brokerage expects Nifty to surpass its record high over the next 5-6 sessions.

ADVANCERS

  • Oil & Natural Gas Corp. (ONGC) +4.8%
  • NTPC Ltd. (NTPC) +4.7%
  • Reliance Industries Ltd. (RIL) +4%

DECLINERS

  • ICICI Bank Ltd. (ICICIBC) -2%
  • Nestle India Ltd. (NEST) -1.4%
  • Larsen & Toubro Ltd. (LT) -1.3%

RELATED NEWS

©2021 Bloomberg L.P.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.