A sharp recovery in indices as trading resumes; Nifty up 400 pts from day’s low

For the first time in twelve years since the recession of 2008, the Indian economy entered the lower circuit. Indian stock has stopped trading for 45 minutes, with the Nifty50 benchmark index, reaching the lower circuit mainly pulled on by global stocks during the Covid 19 epidemic, triggering increasing concerns.

DESCRIPTION :

Since the 10 percent lower market circuit in the early morning, benchmarking indexes resumed trade. At 10:23 AM, IST Sensex dropped by 1493.85 or 4.56% at 31284.29, and the Nifty dropped by 456.85 or 4.76% at 9133.30. There have been roughly 163 advanced shares, a decrease of 1270 and 43, respectively. After Nice reached the 10 percent lower range, benchmark indices restart trading in the second pre-opening session. Sensex plunged by 3.571.94 points at 10:11 hours IST, or 10.90% at 29206.20, while Nifty dropped 1.04% at 8531.05 and 11.09 points. There have been roughly 85 advanced shares, 1272 deferred shares, and 37 remaining shares.

Centered on the guidance of the Securities and Exchange Board of India (SEBI), Indian stock exchanges have been introducing index market-wide circuit breakers since 2 July 2001.

In three steps of index flow, the circuit breaker system is used— 10%, 15%, and 20%. The NSE reported in a notice that these breakers end in a concerted halt to trade in both the stock and equity derivative markets globally.

Both the BSE Sensex or the Handy movement is responsible for the disruption of the chain, as it says above.

The Exchange launched index-driven circuit breakers driven on the SEBI guidelines with effect from 2 July 2001.

The Index-based circuit breaker scheme is valid at 3 points, in any case. At 10%, 15%, and 20%, respectively, Such disconnectors result in a synchronized halt to trading in both stock and bond markets around the world, says NSE in a statement.

The BSE Sensex or Nifty 50, whichever is broken first, activates the market-wide circuit breakers.

CONCLUSION :

Indian stock has stopped trading for 45 minutes, with the Nifty50 benchmark index, reaching the lower circuit mainly pulled on by global stocks during the Covid 19 epidemic, triggering increasing concerns.

BSE Sensex and Nifty Bank have also suspended their trading operation. Both the BSE Sensex and Nifty moves lead the circuit breakers to break, whichever breaks sooner.

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