Tata Motors, UltraTech fall intra-day on suspected freak trades
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Tata Motors, UltraTech fall intra-day on suspected freak trades

Last Updated: Friday, February 01, 2013, 21:29
 
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Tata Motors, UltraTech fall intra-day on suspected freak trades
Mumbai: Suspected erroneous sell orders in Tata Motors and UltraTech Cement stocks saw these counters plunge by 10 percent briefly towards the last half of trade on NSE today, but recovered soon, said an official of the stock exchange.

The NSE will be looking into the fall, the exchange official said.

The exchange official said the problem happened apparently due to some big orders coming from a broker at a very lower price, but the official said the fall in prices was within the exchange limits.

Tata Motors shares fell to Rs 268.25 or over 10 percent from its previous close of Rs 298. It finally closed at Rs 293, down 1.68 per cent. Tata Motors shares fell after six separate block deals comprising a total 20.7 lakh shares took place at an average price of Rs 274.92, according to exchange data.

UltraTech shares fell to Rs 1,712.35, down over 10 percent, after one block deal comprising 41,863 shares took place at an average price of Rs 1,853.80. It closed at Rs 1,870, down 1.71 percent.

However, there was no massive fall on the index, despite Tata Motors being a influential stock. The Nifty fell by 44 points following this for a brief while. The Nifty closed the day with a loss of 36 points to 5,998.90 at end of the day.

On October 5, 2012, erroneous trades by a broker at Emkay Global led to 900 points fall in the Nifty.

CNI Research Chairman Kishor P Ostwal said the fall in these stocks would not have happened if there was physical settlement.

"The 10 percent hit that Tata Motors had to suffer in a freak trade exposed again the weakness in terms of systems. Had there been physical settlements in place, this could not have happened. Ultratech counter too saw the same kind of freak trades today.

"It is very difficult to understand how can freak trade happen in a few stocks. In my opinion, the regulator must look into the issue," Ostwal said in a statement.

PTI



First Published: Friday, February 01, 2013, 21:27


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