Now Reading: Nifty CAS Closing Gap Narrows to Eight Points
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Nifty CAS Closing Gap Narrows to Eight Points
The gap between Nifty’s regular and Closing Auction Session (CAS) prices narrowed to eight points on Thursday, as markets adjusted to the new closing mechanism. Nifty closed at 24,628 at 3.15 pm…
The Story in Brief
The gap between Nifty’s regular and Closing Auction Session (CAS) prices narrowed to eight points on Thursday, as markets adjusted to the new closing mechanism. Nifty closed at 24,628 at 3.15 pm and settled at 24,636 after CAS. The gap was 55 points on Wednesday, compared with 155 points on August 4 and 184 points on August 3.
Exchanges introduced CAS on Monday. It pools end-of-day buy and sell orders and sets one price at which the maximum number of shares can be traded. Anand Rathi Wealth’s Shweta Rajani said the system should improve transparency and reduce sharp closing moves. Geojit Investments’ Gibin John expects better price discovery and fewer arbitrage opportunities over time.
The Indian Opinion
Claims that the first-day swings proved CAS was faulty are premature, just as claims that it will instantly remove all arbitrage are overstated. The early gaps have already narrowed, but fund managers can shift trading opportunities to other parts of the day. The useful test is whether closing volatility and cash-futures spreads remain lower through expiry and index rebalancing sessions, not what happens in one week.
Source: thehindubusinessline.com
This story was synthesised by AI from the source linked above.
