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India's Stock Exchange 'Closes' After State Bank 'Flash-Crash'

Tyler Durden's picture




 

While we have grown accustomed to the daily gyrations on mega-volume in the US equity markets, it seems the HFT-virus has spread as far afield as India this evening. India's National Stock Exchange was halted - with no price dissemination - as State Bank of India plunged over 14% in seconds on massive relative volume (and HDFC and Infosys also fell), dragging the Nifty Index down 3%. Of course, the 'error' is being investigated and SBIN has recovered its losses...

  • *STATE BANK OF INDIA SHARES FALL 14% ON NATIONAL STOCK EXCHANGE
  • *INDIA'S NIFTY INDEX EXTENDS DECLINE TO 2.8%
  • *NATIONAL STOCK EXCHANGE SAYS VERIFYING SOURCE OF PRICE ERROR
  • *NATIONAL STOCK EXCHANGE SAYS NIFTY INDEX LEVELS NOT UPDATING
  • *INDIA'S NATIONAL STOCK EXCHANGE RESUMES TRADING
  • *INDIA'S SENSEX INDEX ERASES LOSS; GAINS 0.3% IN MUMBAI
  • *INDIA'S NSE SAYS `LOOKING INTO' THE FREAK TRADE

 

Sigh!

 

State Bank Of India - oops!

 

State Bank of India (smaller crash) close-up...

 

Source: Bloomberg

 

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Fri, 10/05/2012 - 01:07 | 2858404 neevarp
neevarp's picture

Yes. Welcome to India. As usual, the corrupt authorities will brush aside the issue.

Fri, 10/05/2012 - 01:12 | 2858417 ACP
ACP's picture

How I wish I were an alien observing the human race fuck itself into oblivion. I would be cracking open an Alpha Centauri Pale Ale right now.

Unfortunately, I live here.

Fri, 10/05/2012 - 01:41 | 2858438 putaipan
putaipan's picture

ok ok. ease up fight dudes while i vulnerably aks two simple questions....

 

#1-i am historically used to 12:1 usd/ruppee relations. india has to pay in petrodollars. not so much anymore.

#2 (and i actually looked into a little bit)...... i thought gandhi chased the bankers`out with the british......

so? why isn't the rupee a good hold though 2014? ....56:1? i think they were just being smart.

 

 

Fri, 10/05/2012 - 04:46 | 2858580 ebworthen
ebworthen's picture

No, no, Goldman Slacks and the other squid and great white sharks have moved right back in.

FED busy crushing the dollar, which hurts exports of every other currency, and bank.

Any stock exchange using omputers and the Internet open to HFT and robots.

Algos never sleep, and robots dream of electric trading in their sleep.

Fri, 10/05/2012 - 05:52 | 2858616 Comay Mierda
Comay Mierda's picture

Economic WW3 has begun.  HFTs are on the frontline destroying capital markets of all nations.  All hail Goldman Nutsacks

Fri, 10/05/2012 - 09:57 | 2859413 Oh regional Indian
Oh regional Indian's picture

Gold Mannut Sackz.

India meets HFT (not 9 months agao I do believe) and here we are....

Let the un-certainities begin.

ori

Fri, 10/05/2012 - 08:51 | 2858965 ShortTheUS
ShortTheUS's picture

When the Bombay Stock Exchange calls tech support over this issue, do they reach someone in the U.S.?

Fri, 10/05/2012 - 01:50 | 2858441 BlackholeDivestment
BlackholeDivestment's picture

...an Indian man in London, 2011, turned to his British neighbor, who was standing next to his 911 and said, ''I'm just like you, look at my new 911''. That's nice says the British neighbor. The British man builds a new garage for his 911 a few months later, so the man from India calls up some contractors and a month later turns to his British neighbor and says, ''see, I'm just like you, I have a new garage too''. The British man comes home, in 2012, with a new Bugatti Veyron and the man from India smiles and says, ''I'm better than you''. The Brit says, ''what do you mean you are better than me Bloke, look at my car''. The Indian man says, ''I have ''British'' neighbor''. http://www.youtube.com/watch?v=65EJCzqOzdc 

ba dum tiss...

Fri, 10/05/2012 - 01:51 | 2858447 putaipan
putaipan's picture

i like the soundtrack to the penn movie with metheney better..... that ain't no fuckin' answer!

 

Fri, 10/05/2012 - 03:30 | 2858520 MisterMousePotato
MisterMousePotato's picture

Good story.

Oh, and, David Bowie and Rick Ashley (sp?) ... separated at birth?

Fri, 10/05/2012 - 02:40 | 2858487 saturn
saturn's picture

On Earth, when you spray an error with a pepper spray, losses turn into gains! Come to visit this wonderland with hyper speed 9! But stay cloaked or be dissected in our secret labs.

Fri, 10/05/2012 - 07:48 | 2858686 max2205
max2205's picture

So bullish. Clear the stops and move up. Seen it a million times.
It's called a hollow red candle

Fri, 10/05/2012 - 01:22 | 2858427 barliman
barliman's picture

 

As opposed to the even more corrupt American authorities?

OT - Fucking Waddell & Reed, will they NEVER learn how to properly execute a trade?

barliman

Fri, 10/05/2012 - 01:05 | 2858406 FoeHammer
FoeHammer's picture

Nothing to see here, folks. Move along.

Fri, 10/05/2012 - 02:39 | 2858483 tickhound
tickhound's picture

I agree... This is a daily occurrence in the silver market.  Speaking of which anyone see today's silver icicle?

Fri, 10/05/2012 - 12:03 | 2859930 FoeHammer
FoeHammer's picture

It's a funny formation isn't it?

I've seen the inverse occur for gold in the past week. A nice little plateu. Keep it local, keep it rural.

Fri, 10/05/2012 - 01:09 | 2858409 Falkor
Falkor's picture

Freak TRADE! lol

Fri, 10/05/2012 - 01:10 | 2858413 SHEEPFUKKER
SHEEPFUKKER's picture

I'm numb to flash crashes now. Next. 

Fri, 10/05/2012 - 01:19 | 2858426 Yen Cross
Yen Cross's picture

 Now that was a good post Tyler. That slush from the " MBS injections is finding it's way" straight to Ghandis' mouth!

  This shit is pathetic. I hope this link works foe ya.  
Mumbai (GMT+5:30)

»  Market Holidays
Trading hours 9:15am ~ 3:30pm

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Fri, 10/05/2012 - 02:09 | 2858459 disabledvet
disabledvet's picture

I agree...another home run. This has gone from zero to hero in an afternoon. Wish I could check to see what's under the hood suddenly. (and you all know when I say it I MEAN it!) this is a BIG deal because flash crashes go right at heart of basic market architecture...and it is possible for one of these things to take out an albeit "lesser" exchange. India's fits the bill...and so do many others as a consequence. Again "stay tuned folks"....something BIG is brewing.

Fri, 10/05/2012 - 01:35 | 2858434 Desert Irish
Desert Irish's picture

Ok Tyler now is about time to remind posters of rule 80B coming to us soon....

Fri, 10/05/2012 - 01:45 | 2858442 chump666
chump666's picture

dump ass Indian central bank has juiced the ruppee, printed and acted like the rest of central bank lunatics ala join the party. topped out nervous HFT trades will be the norm.

a very clear warning what will happen to our indexes...any-day now.

 

 

 

Fri, 10/05/2012 - 02:14 | 2858465 disabledvet
disabledvet's picture

Already has happened to us. But we have ETF's, a very diverse economic base and the most liquid markets (still...amazingly enough and no thanks to the friggin Fed I might add) in the world. Needless to say these things have had a MAJOR impact even with all this. India? "just flood the economy with rupee's" is an AWFUL response.

Fri, 10/05/2012 - 04:00 | 2858550 Yen Cross
Yen Cross's picture

do not trade (sek or nok)  Mr.666

Fri, 10/05/2012 - 02:23 | 2858467 iamse7en
iamse7en's picture

ZH... what happened to full subscription RSS feeds?! They're partial again... please fix this.

Fri, 10/05/2012 - 02:40 | 2858486 Yen Cross
Yen Cross's picture

 Lets see, Indians tend to " feed boney cows", and procede to starve to death. 

  Gotta love the Hindi rel/ligion?   Monks and Fire?

Fri, 10/05/2012 - 03:11 | 2858509 misnomer00
misnomer00's picture

got to be better than bombing middle easterners..

Fri, 10/05/2012 - 02:49 | 2858491 q99x2
q99x2's picture

Nothing to worry about here. Someone probably just cashed out to open a 711.

Fri, 10/05/2012 - 02:57 | 2858500 Deathrips
Deathrips's picture

In case you all missed it, Indias culture is one of physical gold and silver. Remember their government was talking about limits on gold purchases like 3-4 months ago...No wonder theres nothing left in the market there. Guess when they tell us not to buy it, we got like 3-4 months.

Its literally so fucked up right now everywhere in the world that we may as well ask the magic 8 ball about the markets. Other things are much clearer..and its not good.

 

6Gs

Fri, 10/05/2012 - 03:19 | 2858511 williambanzai7
williambanzai7's picture

Waddell and Chutney

Fri, 10/05/2012 - 03:48 | 2858538 Yen Cross
Yen Cross's picture

ya had to go there! I love ya #7

Fri, 10/05/2012 - 03:37 | 2858521 neevarp
neevarp's picture

Emkay's Rs 650 crore sell order caused Nifty plunge: NSE

http://goo.gl/qMbKA and http://goo.gl/aLMPN

Fri, 10/05/2012 - 03:48 | 2858537 Skateboarder
Skateboarder's picture

Inflation permeates India pretty fkn bad. And everyone wants an iDevice. You wouldn't believe the volume of loans the banks/gub gave out over the last few years.

Fri, 10/05/2012 - 03:55 | 2858545 Yen Cross
Yen Cross's picture

 all i know, is i'm getting a haircut @ noon tomorow !

Fri, 10/05/2012 - 05:13 | 2858597 Yen Cross
Yen Cross's picture

4 hour chart is melting down. I was really hoping?

   If you look at the  10/20 weighted, crossover on the charts? UGLY/

Fri, 10/05/2012 - 06:06 | 2858626 Seize Mars
Seize Mars's picture

Remember the BATS IPO? (wiping a tear of laughter from my eye.) That was fuckin' awesome. AWESOME.

This whole thing is a shit show.

Fri, 10/05/2012 - 07:02 | 2858658 JarJarBonks
Fri, 10/05/2012 - 07:25 | 2858670 SDRII
SDRII's picture

Is it a coincidence that the market flashed on the day that the Congress Party passed their insurance and pension reforms? They don't seem to have a chance in parliament where Congress has a minority of seats. Working off the leverage form the "Hindi" consensus the INR has made a stunning comeback.

Need to address the gold buying illiterates with real savings vehicles

http://www.silverdoctors.com/indian-finance-minister-says-financial-lite...

 

Ambassador [Images] Frank G Wisner, the erstwhile US envoy to India, who for years -- as vice-chairman, external affairs for American International Group -- was the face of this global insurance conglomerate--which is now being bailed out by the US government to the tune of $150 billion -- in India and was largely responsible for pushing for New Delhi's [Images] opening up of the insurance sector to foreign investors, has quit AIG and joined the top-notch lobbying firm of Patton Boggs, which was recently retained by India to lobby its interests on Capitol Hill and in the new Obama [Images] Administration.

 

http://www.rediff.com/news/2009/mar/07wisner-quits-aig-ex-envoy.htm

 

"The Empire’s Bagman:" Obama Egypt Envoy Frank Wisner Says Mubarak Should Stay

http://www.democracynow.org/2011/2/7/the_empires_bagman_us_ambassador_frank

Fri, 10/05/2012 - 08:02 | 2858717 orangegeek
orangegeek's picture

Flash crash.  Who gives a shit.

Thu, 10/11/2012 - 02:34 | 2877099 omufrench
omufrench's picture

Post-Game Analysis :

Well, someone did make money..

http://economictimes.indiatimes.com/markets/analysis/how-inventures-clie...

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