Sensex Jumps 500 Points, Nifty Slips 200 Points After Closing Auction Rally Fades
Indian markets opened mixed on Tuesday as the Sensex gained while the Nifty declined after investors unwound gains from the previous session’s unusual closing-auction driven rally. Most sectors traded lower, with IT, realty and financial stocks under pressure. Analysts said the spike caused by the new mechanism is likely to normalise
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Indian equity markets opened on a mixed note on Tuesday, with the Sensex trading higher while the Nifty 50 declined as investors adjusted positions after the previous session’s sharp rally triggered by the new Closing Auction Session (CAS) mechanism.
While Sensex jumped up to 500 points during the early trade, Nifty declined almost 200 points.
The contrasting movement came a day after Indian stock exchanges introduced the new Closing Auction Session for stocks in the futures and options (F&O) segment.
The mechanism led to an unusual surge in the Nifty during Monday’s closing session, prompting investors to reassess positions on Tuesday.
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SEBI’s new CAS, which came into effect on Monday, has changed the way closing prices are determined for stocks in the futures and options segment.
Earlier, the closing price was calculated using the volume-weighted average price (VWAP) of trades executed during the last 30 minutes of regular trading.
Under the new system, buy and sell orders placed around market closing are matched through a single-price auction, and the price discovered through this process becomes the official closing price.
The revised mechanism aims to make the closing price discovery process more transparent and efficient.
At 10:40 am, the BSE Sensex was trading 36 points higher at 78,675. Meanwhile, the NSE Nifty50 fell 194 points, or 0.78%, to 24,580.
Market breadth remained weak, with 15 of the 16 sectoral indices trading lower in early deals. The Nifty IT index declined 0.95%, while Nifty Realty dropped 1.24%. Nifty Financial Services slipped 0.64% and Nifty Auto fell 0.66%.
Broader markets showed a mixed trend. The Nifty Smallcap 100 index gained 0.42%, while the Nifty Midcap 100 declined 0.19%.
Among Sensex-listed companies, Asian Paints was the top gainer, rising 1.31%, followed by Tata Steel, which advanced 1.22%. Kotak Mahindra Bank gained 1.08%, Trent climbed 0.97%, Bajaj Finance added 0.94% and Adani Ports increased 0.90%.
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