INSUBCONTINENT EXCLUSIVE:
NEW DELHI: While a recovery in US index futures was cited as the key reason behind the resounding rebound in the domestic market on Friday,
work in the big selloff seen in the US index in recent days
As index target levels were getting breached in quick succession, algos used by some of the funds got triggered, leading to the phase-wise
executing orders using automated pre-programmed trading instructions that use different variables such as time, price and volume.
Kalra said
the selloff was supposed to end around 2,450 on S-P500
On Thursday, the index shut shop at 2,480, which triggered a trend reversal and kicked in algo-based buying from this morning.
Kalra said
Asian markets recouped losses on Friday after falling up to 10 per cent in early trade
Across Asia, Shanghai ended the day down 1.23 per cent, Hong Kong 1.14 per cent, Kospi 3.43 per cent and Nikkie 6.08 per cent.
Indian stocks
Nifty ended 433 points higher at 10,023.
Earlier in the day, Sensex had fallen as much as 10.34 per cent, or 3,389 points, to 29,388, while
Nifty had declined as much as 10.79 per cent or 1,035 points to 8,555, to hit the lower circuit limit, triggering a 45-minute trading
halt.
Markets in Europe opened up to 4 per cent higher.
At the time, the domestic market closed, US e-mini S-P 500 futures were trading
92.50 points higher at 2,561, signalling some bounce in US stocks later in the day
positions were seen in Nifty
exchanges have a robust risk management framework in place.
Investors also took comfort in the fact that oil prices headed for the biggest
weekly loss since 1991 and US crude headed for its worst week since 2008
Also, in the evening today, the US Congress will reveal details of the coronavirus aid package
