Indian “flash crash” hits stocks with 16% drop due to broker error

0 mins. to read

After the infamous May 6, 2010 U.S. “Flash Crash”  in which the Dow Jones Industrial Average dropped about 1,000 points or 9% in minutes, only to recover those losses almost immediately, today it was the turn of the Indian stock market to do the same.

The Indian market saw its “flash crash”  wiped some $60 billion off the value of India’s leading companies, with a 16% drop in the main index causing the Mumbai exchange to temporarily stop trading in stocks known collectively as the “Nifty Fifty”.

The crash was caused by orders worth $126 million being entered incorrectly by a Mumbai based brokerage house, Emkay Global, apparently due to human error not rogue algorithmic trading as was the case in the U.S. crash.

Contrarian Investor UK


Comments (0)

Comments are closed.