After Nifty's last-minute 200-point surge following the introduction of the Closing Auction Session (CAS) on Monday sparked confusion among market participants, the NSE clarified that the benchmark index’s value does not change abruptly at the close but is determined through a defined process.
Stock exchanges introduced the new CAS system from August 3, changing the way closing prices are calculated for stocks included in the futures and options (F&O) segment. On the launch day, Nifty surged nearly 200 points in the final two minutes of trade as traders adjusted to India's new closing auction mechanism for large-cap stocks.
