Sensex plunges over 2,000 points, closes down 0.7% under CAS
The Indian stock market had a roller coaster moment on Thursday, with the Sensex plunging over 2,000 points in just six minutes during the first monthly expiration under the new Closing Auction Session (CAS).
It bounced back a bit but still closed down 0.7%, while Nifty slipped by 0.48%.
CAS was rolled out to set closing prices through auctions, but has already raised fresh questions and drawn renewed regulatory scrutiny for making things more unpredictable at the end of trading.
Sebi extends derivatives trading window
Thursday's chaos highlighted some big issues with CAS: mainly it's made markets jumpier because fewer high-speed traders are sticking around near closing time, which means less liquidity and bigger price swings.
Sebi has extended derivatives trading beyond the auction window so traders have more time to adjust positions after getting clarity on closing prices and delivery requirements.
While CAS was meant to bring India in line with global standards, it's clear there are still some kinks to work out for our local market scene.