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Tata Motors, UltraTech Cement shares slump in afternoon trade

Tata Motors, UltraTech Cement fall as much as 10% in intraday trade on the NSE
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First Published: Fri, Feb 01 2013. 10 07 PM IST
Tata Motors posts a sharp decline in January sales volume, down 56% from the year before to 15,209 units.
Tata Motors posts a sharp decline in January sales volume, down 56% from the year before to 15,209 units.
Updated: Fri, Feb 01 2013. 11 49 PM IST
Mumbai: Tata Motors Ltd and UltraTech Cement Ltd briefly plunged as much as 10% in afternoon trade on Friday before recouping losses to a varying extent, providing a reminder of the “flash crash” of October last year.
Tata Motors and UltraTech Cement fell as much as 10% on the NSE. Tata Motors closed 1.68% lower at Rs.293 a share while UltraTech ended 1.71% down at Rs.1,870 on the NSE.
An NSE official, who did not want to be named, said there had been no faults at the exchange end and no trade limits had been crossed.
On BSE, Tata Motors fell as much as 9.4% and closed 4.36% lower at Rs.285 a share. UltraTech closed 2.17% down at Rs.1,860.85.
Religare Capital Markets Ltd, which uses third-party software for execution of orders on stock exchanges, admitted that unintended transactions were keyed in.
In a statement after the market hours, it said, “Due to some technical issues in the software, unintended transactions got executed. There was no broker error and no loss to any clients.”
“The matter is being investigated by the software supplier. Religare Capital Markets Ltd has discussed the matter with exchange officials,” the statement added.
The statement however, did not clarify if transactions relating to both Tata Motors and UltraTech Cement were executed by Religare.
Market participants called for improved supervision.
“The hurried manner and the pressure under which trades are sometimes conducted lead to such events. More checks and audits are required,” said Deven Choksey, managing director and CEO of KR Choksey Shares and Securities Pvt. Ltd. “These kind of events are scary and makes one lose confidence in the system.”
On 5 October, the NSE’s 50-share Nifty plunged 900 points and all cash rates on the index were frozen for about 10 minutes.
Meanwhile, after market hours on Friday, Tata Motors posted a sharp decline in January sales volume, down 56% from the year before to 15,209 units.
Anirudh Laskar and Vyas Mohan contributed to this story.
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First Published: Fri, Feb 01 2013. 10 07 PM IST
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