Stock markets trade mixed amid introduction of new closing auction session

Sensex and Nifty traded mixed after the new Closing Auction Session for F&O stocks took effect. Analysts called Monday’s sharp Nifty surge a one-off anomaly, while positive economic indicators, FII buying and global market trends continued influencing investor sentiment

Mumbai: Stock market benchmark indices Sensex and Nifty traded on a mixed note in early trade on Tuesday following 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.

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The 30-share BSE Sensex climbed 97 points to 78,736.20 in early trade. The 50-share NSE Nifty declined 173.95 points to 24,600.35.

Benchmark equity indices Sensex and Nifty on Monday ended with an unusual aberration after stock exchanges introduced the new auction mechanism.

“The 390-point spurt in the Nifty yesterday caused primarily by the new closing auction session (CAS) for determining the closing prices of stocks in the F&O segment is expected to normalise today. The sharp spike in Nifty vis-a-vis Sensex was an aberration caused by the new CAS, and therefore, investors need not attach much importance to this one-day aberration,” VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said.

From investor’s perspective, the significant trend is the positive development emerging in the economy and markets, he added.

Extending the winning momentum to the fourth day, the Sensex jumped 544.39 points, or 0.70 per cent, to settle at 78,639.03.

The Nifty climbed 390.70 points, or 1.60 per cent, to end at 24,774.30.

From the Sensex pack, Asian Paints, Tata Steel, Trent, Bajaj Finance, Bharat Electronics and Kotak Mahindra Bank were among the major winners.

Infosys, Hindustan Unilever, HDFC Bank and Tata Consultancy Services were among the laggards.

Brent crude, the global oil benchmark, traded 1.36 per cent higher at USD 84.91 per barrel.

Foreign Institutional Investors (FIIs) bought equities worth Rs 922.26 crore on Monday, according to exchange data.

In Asian markets, South Korea’s KOSPI, Japan’s Nikkei 225 index and Hong Kong’s Hang Seng index were quoting lower, while Shanghai’s SSE Composite index traded higher.

US markets ended sharply higher on Monday.