PremiumTrading had to be halted in Indian markets for 45 minutes today after Nifty50 index crashed 10% in early trade. Trading had to to be halted with Nifty down 10.07% to 8,624 while BSE also halted trading with Sensex down 9.4% at 29,687. This is first time in 12 years trading in Indian markets had to be halted. The market-wide circuit breaker system of BSE and NSE applies at three stages of the index movement, either way at 10%, 15% and 20%. These circuit breakers bring about a coordinated trading halt in all equity and equity derivative markets nationwide.
The market-wide circuit breakers are triggered by movement of either the BSE Sensex or the Nifty 50, whichever is breached earlier.
After BSE and NSE resumed trading, Nifty50 and Sensex recovered
After a trading halt, markets re-open after index based market-wide circuit filter breach, with a pre-open call auction session. A 15-minute pre opening session post each trading halt is held, unless trading is halted for the remainder of the day.
The Indian rupee today also hit a record low of 74.50 against the US dollar.
Panic over the fast-spreading coronavirus sent global equity markets crashing amid fears of a global recession. Wall Street has hit circuit limit multiple times this week, triggering temporary trading halt. India reported its first death from coronavirus late on Thursday while total number of cases in the country has crossed 70.
The virus, which originated in China, has spread quickly across the globe, killing several thousands and forcing Italy into lockdown. Financial markets have taken a severe beating over the last few weeks as the virus disrupted businesses across the globe.
The trigger limits and the respective halt duration:
10% movement before 1 pm - trading halt of 45 minutes
10% movement at or after 1 pm to 2.30 pm - trading halt of 15 minutes
10% movement at or after 2.30 pm - no halt
15% movement before 1 pm - trading halt of 1 hour 45 minutes
15% movement At or after 1 pm before - trading halt of 2 pm 45 minutes
15% movement - On or after 2 pm - Trading halt for the remainder of the day
20% movement any time of the day - Trading halt for the remainder of the day
BSE and NSE compute the index circuit breaker limits for 10%, 15% and 20% levels on a daily basis based on the previous day's closing level of the index rounded off to the nearest tick size.
For example, on NSE, based on Nifty 50's closing of 9,590 on 12th March, Nifty's circuit filter trigger limit (movement either side) for today is 10% (959 points), 15% (1,438 points) and 20% (1,918 points). (With Agency Inputs)
