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BSE shares fall after Closing Auction Session cuts volumes
BSE said the CAS change has reduced participation from high frequency and other traders, with CAS trades under 1% of daily cash-market turnover.
BSE shares declined in Wednesday trading, after the exchange pointed to its Closing Auction Session as a factor behind thinner end-of-day liquidity. The stock opened at ₹3,222.60 per share, down from ₹3,242 on Tuesday, and later hit an intraday low of ₹3,131.50 on 2 September, according to LiveMint Markets.
The exchange introduced CAS on August 3 as a short end-of-day auction that matches buy and sell orders to set an official closing price. BSE said the new mechanism has led to lower participation from HFT, proprietary accounts, and retail traders, adding that participation needs to pick up, a comment attributed to ZEE Business by LiveMint Markets.
CAS replaced the previous closing-price method, which used the average price of trades executed during the final 30 minutes of continuous trading. Regulators said CAS was intended to align Indian markets with global practices, but LiveMint Markets noted that it has coincided with notable price swings and divergences in benchmark indices since launch.
Exchange data cited by LiveMint Markets showed trades during the approximately 20-minute auction accounted for less than 1% of total daily cash-market turnover, and volume was under one-third of the activity recorded under the prior closing-price approach. Still, BSE’s broader trend has remained positive, with the stock down 5.49% over a week and 14% over a month, while gaining 19.60% year-to-date and 43.24% over the past year.