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Indian stock brokers react while watching Bombay Stock Exchange (BSE) index on their trading terminal in Mumbai, India, Monday, Sept. 17, 2012. India's central bank Monday cut the cash reserve ratio as it tries to kick-start flagging growth and welcomed government efforts to open Asia's third-largest economy to more foreign investment.
Indian stock brokers react while watching Bombay Stock Exchange (BSE) index on their trading terminal in Mumbai, India, Monday, Sept. 17, 2012. India's central bank Monday cut the cash reserve ratio as it tries to kick-start flagging growth and welcomed government efforts to open Asia's third-largest economy to more foreign investment.
(Rajanish Kakade/AP)

Indian stock exchange hit by mini flash crash

India’s National Stock Exchange endured its very own flash crash Friday, prompting a sell-off that wiped out $60-billion (U.S.) in value and sending shares of companies such as State Bank of India plummeting in a matter of seconds.

Because the drop was so dramatic, trading on the exchange was quickly halted. But while most people assumed the crash was caused by computer algorithms or high frequency traders running wild, it was quickly determined that the crash was caused by human error.