India's newly introduced Closing Auction Session (CAS) witnessed robust participation on its first day, with the National Stock Exchange (NSE) recording turnover of Rs 1,276.2 crore during the auction window. The Bombay Stock Exchange (BSE), meanwhile, recorded CAS turnover of Rs 10.8 crore.
Banking and large-cap stocks dominated trading activity during the auction session. ICICI Bank, HDFC Bank, Reliance Industries, Infosys, Bharti Airtel, Bajaj Finance, Eternal, Tata Consultancy Services (TCS), CG Power and Axis Bank emerged as the most actively traded stocks on the NSE.
Together, these 10 stocks accounted for around 30% of the total Closing Auction Session turnover on the NSE, highlighting concentrated institutional activity in benchmark heavyweights.
The Closing Auction Session made its debut on Monday as part of Phase 1 of SEBI's new closing price discovery framework for eligible stocks.
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Under the new mechanism, the market closing price is determined through a dedicated auction that matches the maximum number of buy and sell orders at a single equilibrium price, replacing the earlier Volume Weighted Average Price (VWAP)-based closing methodology.
Regulatory sources said the strong participation in the inaugural auction reflects smooth implementation of the new framework. They also clarified that the divergence seen between the closing levels of the Nifty 50 and Sensex was entirely driven by market forces and not due to any technical issue.
Currently, the CAS framework applies only to eligible cash market stocks with corresponding futures and options (F&O) contracts. The market regulator plans to expand the mechanism to additional securities in a phased manner over time.
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