Closing Auction System: Why C.A.S. Is Moving Sensex And Nifty Differently, Expert Explains

The new Closing Auction Session (CAS) has sparked volatility and unusual price divergence between the Sensex and Nifty, leaving many investors confused. Speaking to Business Today, market expert Sudip Bandyopadhyay said such fluctuations are common whenever a new market mechanism is introduced. He expects the system to stabilize within a week as traders become familiar with the process. Jain added that Thursdays may continue to see higher volatility due to weekly F&O expiry, but emphasized that the closing auction system is widely used in global markets and should eventually lead to smoother price discovery.