CAS
No room for CASual volatility
The recent Closing Auction Session has led to dramatic swings in the market, resulting in major losses for investors. While the intention behind the new system was to enhance mutual fund assessments, it has instead spiraled into chaos. Regulators have taken action against those found manipulating the session and acknowledged systemic flaws, emphasizing the need for a robust securities lending framework to stabilize future sessions.
Was Sensex’s 2,000-point expiry crash a one-off? Here's what Friday's close hints about CAS
Sensex stayed relatively calm during Friday’s closing auction, a day after a 2,000-point plunge during the monthly expiry raised fresh concerns over CAS. The subdued move suggests Thursday’s sharp swings may have been an expiry-driven anomaly rather than a persistent issue with the new closing-price mechanism, experts said.
Sensex rises 330 points, Nifty closes above 24,150 as IT rally helps market snap 2-day losing streak. What’s ahead?
Indian markets rebounded on Friday after two sessions of losses, with Sensex rising 331 points and Nifty gaining 85 points. Heavyweight IT stocks TCS, Infosys, Tech Mahindra and HCL Technologies led the rally. Nifty IT surged 3.5%, while broader markets advanced and India VIX fell over 4%, signalling easing volatility.
CAS chaos: How did Sensex crash 2,000 points in 6 minutes while Nifty stayed stable on monthly expiry?
Sensex plunged over 2,000 points during Thursday’s closing auction session before recovering some losses, while Nifty remained comparatively stable. Market experts attributed the sharp divergence largely to thin trading volumes on BSE. The episode has renewed scrutiny of the new CAS mechanism, particularly around monthly expiry and its impact on price discovery.
Bankex put sees a dramatic surge of 14,700% on expiry day
Bankex options saw a significant surge during Thursday's expiry session. This unusual spike occurred within minutes, causing considerable trader reaction. Indicative closing levels briefly showed a steeper Sensex decline than expected. Several Bankex put options experienced sharp premium jumps, impacting sellers. The Sensex and Bankex closed lower, while Nifty and Bank Nifty saw smaller declines.
Ahead of Market: 10 things that will decide stock market action on Friday
Indian equities ended sharply lower on Thursday as expiry-day volatility intensified after the first monthly expiry under the Closing Auction Session. Sensex fell 539 points and Nifty 117 points, while technical indicators signalled weakening momentum amid global and geopolitical uncertainty.
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Sebi chief Tuhin Kanta Pandey clarifies on CAS changes after big Sensex expiry-day swing
Sebi Chairman Tuhin Kanta Pandey said the regulator has no plans to change the Closing Auction Session despite sharp expiry-day swings. Sebi expects participation and understanding to improve, while monitoring liquidity concerns and alleged manipulation. NSE IPO approval is also nearing.
Monthly Expiry shock: Did CAS fail its biggest test after Sensex loses 2,000 points in 6 minutes?
The Sensex witnessed a sharp late-session swing of over 2,000 points in six minutes on Thursday, raising fresh questions about the Closing Auction Session (CAS) on its first monthly derivatives expiry. The Nifty also ended lower as thin auction-window liquidity amplified volatility and drew renewed regulatory scrutiny.
Market wrap: Adani Enterprises, Kotak Mahindra Bank, HDFC Bank, M&M top gainers and losers on Nifty and Sensex on Thursday
Indian equity markets closed lower on Thursday, with the Sensex falling 539 points and the Nifty declining 117 points as selling intensified late in the session. Adani Enterprises and Kotak Mahindra Bank led Nifty gainers, while Hindalco, HDFC Bank and M&M emerged among the biggest losers.
Sensex sharply tumbles 500 points on first monthly expiry after CAS, Nifty closes below 24,100. What lies ahead?
Indian equities fell sharply on Thursday, erasing gains during the first monthly expiry under the new closing auction session. Sensex dropped 539 points, or 0.7%, while Nifty declined 117 points, or 0.48%. HDFC Bank and NTPC led losses, while Kotak Mahindra Bank, ICICI Bank and Tech Mahindra gained.
Ahead of Market: 10 things that will decide stock market action on Wednesday
Sensex and Nifty reversed morning losses to close higher on Tuesday, amid sharp volatility on the first expiry day after the closing auction session launch. Healthcare and financial stocks gained, while broader market breadth remained mixed and cautious.
Sensex rises 287 points, Nifty closes above 24,300 as market swings into green on first monthly expiry after CAS
The Indian stock market ended higher on Tuesday after a volatile session, with Sensex gaining 287 points and Nifty rising 115 points. Pharma, PSU banks and consumer durables led sectoral gains, while private banks and metals declined. IndiGo, Adani Ports, Infosys and Trent gained, while Eternal and HCLTech fell.
BSE shares: Prabhudas Lilladher cuts target price to Rs 4,025 as CAS hits derivatives volumes
Prabhudas Lilladher retained its ‘Buy’ rating on BSE but lowered the target price to Rs 4,025 from Rs 4,850, citing a slowdown in derivatives volumes after the implementation of the Closing Auction Session (CAS). The brokerage also flagged tighter bank-guarantee norms and higher STT as near-term headwinds, while maintaining a positive long-term view on BSE.
CAS chaos triggers liquidity spiral: Nuvama says higher participation needed to break cycle
BSE’s new Closing Auction Session has faced weak participation, with Nuvama reporting sharp declines in option premium volumes and contracts. Thin liquidity is creating a self-reinforcing cycle, while early confusion, retail concerns and alleged CAS manipulation have further intensified scrutiny of the new closing-price mechanism.
Rs 30,000 cr loss in 3 months: Why BSE stock is failing investors and should you buy now?
The BSE stock has witnessed a pronounced decrease in market value recently, attributed to the introduction of new auction regulations and diminished option trading activity. Additionally, the stricter bank guarantee requirements for brokers have raised alarm among investors. As a result, analysts have revised down their earnings expectations and stock projections, posing challenges for the exchange in maintaining its present valuation.
Forget ‘disrupting the universe’: Why companies need constructive aspirations, not corporate bakwaas
Companies often confuse lofty corporate slogans with meaningful ambition, but real progress comes from practical, achievable goals, the writer argues. While “constructive aspirations” focus on improving products, customers, costs and everyday operations, “bakwaas aspirations” thrive on buzzwords and grand promises.
CAS v BAS, spot the difference, if you can
Companies pursue two types of aspirations, constructive and nonsensical. Constructive aspirations focus on practical improvements and achievable goals. Nonsensical aspirations involve grand pronouncements without concrete action plans. The article highlights the tendency for grander, nonsensical ideas to receive more attention. Wise companies prioritize practical, constructive efforts for genuine advancement.
Explained: How a JP Morgan unit and a Mumbai-based stock broking firm allegedly manipulated Sensex during CAS
The regulator flagged three sharp Sensex spikes, including a 362-point jump in two seconds and a 405-point surge in 28 seconds, as the index’s CAS closing price moved to around 78,080 from a 3:15 pm reference of 77,829.60.
Longest on record! Nifty fails to cross previous day's high for 12 straight days. Will it surpass today?
The Nifty index has struggled to break its previous day's high for an astonishing twelve sessions in a row. This unusual sequence is coinciding with investors evaluating robust quarterly earnings against looming global uncertainties. Market trajectories are now closely tied to the stability of crude oil supplies and liquidity in the domestic arena.
Sebi bars two entities for 'manipulating' CAS
Sebi barred Copthall Mauritius Investment and Mansi Share and Stock Broking from securities market access. The regulator alleged manipulation of the Sensex during the new closing auction session. Sharp and unusual movements were detected in the index on August 13 expiry day. These actions aimed to benefit from outstanding Sensex options positions, Sebi stated. The entities allegedly generated wrongful gains totaling over Rs 3.6 crore.
Sebi flags manipulative trades during CAS on Sensex expiry day, fines two entities
Sebi issued an interim order against Copthall Mauritius and Mansi Share and Stock Broking for manipulative trading during the August 13, 2026, Closing Auction Session. The regulator impounded Rs 3.67 crore in alleged wrongful gains from these two entities.
BSE shares bounce 2% after 5-session losing streak. Here’s why Jefferies, Nuvama advise caution
BSE shares face fresh pressure after Nuvama and Jefferies downgraded the stock, citing headwinds from the Closing Auction Session, RBI’s bank guarantee norms and limited scope for further market share gains. Nuvama cut its target price to Rs 3,240, while Jefferies lowered its target to Rs 2,940.
Nifty falls for sixth straight session; oil surge, CAS volatility rattle markets
Indian markets faced pressure as the Nifty declined for a sixth consecutive trading session. Rising oil prices and ongoing West Asia conflict kept traders cautious throughout the day. The Nifty closed lower, reflecting broader market weakness and investor concerns. Domestic institutional investors provided some buying support, while FPIs also bought shares. Technical indicators suggest a period of consolidation for the indices in the near term.
Getting used to CAS for auction delivery
Sebi's new closing auction session will determine stock prices. This new method improves price discovery and reduces manipulation risks. Options traders accustomed to old methods are experiencing initial friction. The regulator is open to feedback for fine-tuning the system. This new mechanism is intended to promote market stability and efficiency.
BSE shares drop 3% after second downgrade in two days. Nuvama lists CAS among 3 key headwinds
BSE shares extended their losing streak after Nuvama downgraded the stock to Hold and cut its target price, citing three key concerns: the impact of CAS on trading volumes, tighter bank guarantee norms and limited scope for further market-share gains. Jefferies also recently downgraded the stock, adding to pressure on its earnings outlook.
Sebi chair rules out CAS rollback; assures commitment to resolving ongoing issues
The Securities and Exchange Board of India is set to assess the implications of the newly implemented Closing Auction Session. Chairman Tuhin Kanta Pandey affirmed that this mechanism will remain in place and will undergo enhancements. Designed to ascertain closing prices for stocks in the futures and options market, the system has faced scrutiny from market participants who have reported losses.
Closing auction gets off to a rocky start, but India’s markets will adapt
India's stock markets are adopting a closing auction session, impacting passive fund investing. Initial trading days showed price divergence and lower participation rates. Sebi noted no manipulation, attributing early issues to market circumspection. Improved broker interfaces and price visibility are now needed for better arbitrage. The market reform requires adaptation, but aims for greater efficiency and transparency.
BSE shares tumble 5% after Jefferies downgrades stock to 'underperform'. Here’s why
BSE shares fell sharply on Monday after Jefferies downgraded the stock and cut its target price to Rs 2,940, citing risks from proprietary trading activity, STT changes, RBI bank guarantee norms and the Closing Auction Session. The brokerage also lowered earnings estimates, despite BSE’s strong Q1FY27 profit and revenue growth.
Sebi chief Tuhin Kanta Pandey says CAS here to stay, will study concerns over rollout
Sebi Chairman Tuhin Kanta Pandey says the closing auction session (CAS) is here to stay, even as the regulator reviews concerns over its implementation. Launched on August 3, CAS has triggered sharp moves in the final minutes of trading and raised concerns over legacy systems, order placement and derivative positions. While Sebi has found no evidence of manipulation, Bernstein expects near-term pressure on index-options volumes.
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