Glitch at Religare upsets Tata Motors, UltraTech shares
02 Feb 2013
Religare Capital Markets today said a technological malfunction caused "unintended transactions", a day after deeply discounted sale of large blocks of shares in Tata Motors and UltraTech Cement hit the markets.
The National Stock Exchange Ltd said on Friday it was investigating the block sales in two stocks, the latest in a series of unusual price movements to rattle the market.
"Religare Capital Markets Ltd uses third party software for execution of orders on stock exchanges. Due to some technical issue in the software, unintended transactions got executed," the brokerage said in a statement.
"There was no broker error and no loss to any client," it said, and added that the matter was being looked into by the software provider. It said there was no impact on client business and the brokerage would operate normally on Monday.
A total of 2.07 million shares in Tata Motors were sold in six blocks at an average price of Rs274.92 in the afternoon on Friday, well below the roughly Rs292 level at which the shares were trading at the time.
Tata shares fell as low as Rs268.25 before ending the session down 5.49 per cent at Rs281.64.
Shares in cement maker UltraTech ended down 3.4 per cent after an earlier block sale of 41,863 shares took place at an average Rs1,853.80, also well below where shares were trading at the time.