BREAKING
Spider-Man Brand New Day Box Office collection Day 6: Tom Holland film crossed USD 1 billion worldwideSharad Pawar’s Party dissolves its panel of spokespersonsCalcutta HC denies permission to Abhishek Banerjee to travel abroad for eye treatmentRBI targets rollout of polymer currency notes by FY28: Governor MalhotraDid you know there was a Nintendo company in Bihar? Delhi High Court stops its nameHyderabad-based company donates Rs 2 crore to TTD’s SV Pranadana TrustGovernment tightens rules on GLP-1 weight-loss drug ads as demand for obesity medicines soarsPM’s speech removed from FB: Parl panel asks Zuckerberg to apologise, threatens to withdraw immunityVarun Dhawan finds striking a pose between workouts ‘fun’Mumbai Police probe social media post warning of possible terror attack in August
Business

Indices snap 4-day bull run as CAS roll out triggers retreat

hellohimachalse@gmail.com 05 Aug 2026 3 hours ago

Mumbai Snapping the four-day gaining streak, benchmark stock indices Sensex and Nifty closed lower on Tuesday following the introduction of a new auction mechanism for shares having futures and options (F&O) contracts.

Paring early gains, the 30-share BSE Sensex declined by 210.08 points, or 0.27 per cent, to settle at 78,428.95. During the day, the benchmark hit a high of 79,143.15 and a low of 78,211.87, gyrating 931.28 points. The 50-share NSE Nifty closed lower by 159.40 points, or 0.64 per cent, at 24,614.90 after trading in the negative territory throughout the day. During intraday trade, it edged lower by 346.35 points, or 1.39 per cent, to hit a low of 24,427.95.

Market benchmarks traded on a mixed note in the early session on Tuesday, a day after the introduction of the new auction mechanism. Sensex and Nifty on Monday ended with an unusual aberration after stock exchanges introduced the new auction mechanism. The NSE recorded a turnover of Rs 1,542.2 crore on the second day of the closing auction session on Tuesday, while the turnover on the BSE stood at Rs 9.35 crore. On Monday, the initial trading turnover was Rs 1,276.2 crore for the NSE.

The Closing Auction Session (CAS) in the equity cash segment became operational on Monday, introducing a new auction-based mechanism for determining the closing prices of eligible stocks in a move aimed at making the price discovery process more transparent and robust. Generally, movement in both the benchmark indices is in sync.

“The introduction of the Closing Auction Session (CAS) for F&O stocks has added a new layer of volatility to benchmark indices, with Tuesday’s trade reflecting an early adjustment to the revised market structure. After Monday’s auction lifted closing prices in several index heavyweights, investors spent much of today’s session recalibrating positions as prices gravitated back toward levels established during continuous trading,” Hariselvan Radhakrishnan, Founder & CEO of HST Wealth, a Research Analyst firm, said.

The resulting adjustment has been more evident in the Nifty than in the Sensex, as stocks most influenced by the new auction mechanism witnessed relatively sharper profit-taking, he said. “The divergence appears to reflect market mechanics rather than any meaningful change in underlying fundamentals,” Radhakrishnan added.

“Tuesday’s weekly expiry, combined with the implementation of the new mechanism for determining F&O closing prices, has led to a distortion in market trends,” Vinod Nair, Head of Research, Geojit Investments Limited, said.

Related News