Markets snap 4-day rally amid new closing auction session, Sensex drops 210 points
Market benchmarks trade on a mixed note in the early session on Tuesday following the introduction of the new auction mechanism
Stock market benchmark indices Sensex and Nifty closed lower on Tuesday, ending their four-day rally, following the introduction of a new auction mechanism for shares having futures and options (F&O) contracts.
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.
Market benchmarks traded on a mixed note in the early session on Tuesday following the introduction of the new auction mechanism.
Paring early gains, the 30-share BSE Sensex declined 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.
After trading in the negative territory throughout the day, the 50-share NSE Nifty dropped 159.40 points, or 0.64 per cent, to end at 24,614.90. During intraday trade, it edged lower by 346.35 points, or 1.39 per cent, to hit a low of 24,427.95.
Benchmark equity indices Sensex and Nifty on Monday ended with an unusual aberration after stock exchanges introduced the new auction mechanism.
Generally, movement in both the benchmark indices is in sync with each other.
