Indian markets rally as exchanges introduce new F&O closing method
Business
The Indian stock market had a good Monday, with Nifty jumping 1.6% to close at 24,774.30, and Sensex up 0.7%, finishing at 78,639.03.
What's new? The stock exchanges rolled out a fresh way to calculate closing prices for stocks with futures and options (F&O).
Trading ends 3:15pm with 20-min auction
Instead of averaging trades from the last half-hour like before, trading now wraps up at 3:15pm and is followed by a special 20-minute auction session.
The official closing price is set where buy and sell orders match best within a tight range around the reference price from earlier trades, giving investors more influence on how the day ends.
F&O stocks daily gains calculation changed
This update changes how daily gains or losses are calculated for F and O stocks.