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India launches auction-based closing prices to improve market discovery
BSE said the first day of the Closing Auction Session saw participation from more than 400 trading members across over 200 stocks.
Indian stock markets rolled out an auction-based closing price mechanism on Monday, introducing the Closing Auction Session (CAS) to improve price discovery and reduce the scope for manipulation, according to Reuters via LiveMint.
BSE said the launch was implemented successfully and that trading remained stable, with active participation from over 400 trading members across more than 200 scrips. The exchange also cited participation from 515 trading members, which placed orders over 50,000 unique accounts.
LiveMint reported that the first day of the new system produced an unusual aberration, with both the Sensex and Nifty ending with a spike after the CAS affected closing price setting for F&O stocks. Geojit Investments chief investment strategist VK Vijayakumar said the one-day divergence between Nifty and Sensex was tied to the new closing auction mechanism and was expected to normalize.
After the debut, the Sensex gained 544.4 points, or 0.7%, to finish at 78,639.0, while the Nifty rose 390.7 points, or 1.6%, to end at 24,774.3. Asian Paints, Tata Steel, Trent, Bajaj Finance, Bharat Electronics, and Kotak Mahindra Bank were among the major gainers, while Infosys, Hindustan Unilever, HDFC Bank, and Tata Consultancy Services lagged.
Latest closeSensex 78,094.64 ▲0.2%