On Friday, Axis Nifty ETF and Axis Gold ETF logged a surprise surge of 6,553 percent and 741 percent, respectively, due to a technical error on the National Stock Exchange (NSE). ETFs (exchange-traded funds) are like mutual funds that passively track an asset or index.
On Friday, neither Nifty 50 nor gold, the underlying assets of the two Axis ETFs, saw such a huge rally.
"Members are requested to note that trades in Axis Gold and Axis Nifty till 09.50 am will be cancelled by the exchange. Trading in these securities shall resume with the revised price band post this activity and the same will be notified in advance," an NSE spokesperson said in a notification, as quoted in a Mint report.
On Friday afternoon, Axis Gold ETF was up by 6,553 percent to Rs 3,482.85 from the previous close of Rs 52.35, while Axis Nifty ETF was quoting at Rs 1,151, up 741.37 percent from the previous close of Rs 136.80.
Further, Axis Nifty ETF and Axis Gold ETF surged 20 percent on Thursday against a rise of 0.80 percent and 1.5 percent in the Nifty 50 index and gold prices, respectively.
Axis Gold ETF had fixed 24 July as the record date to for the purpose of splitting mutual fund units from Rs 100 to Re 1, while Axis NIFTY ETF announced the same day as the record date for face value split of shares from Rs 100 to Re 10 each. According to the experts, this spike was compounded by an error at the NSE, which displayed the pre-split prices on Friday.