Sensex slumps 555 points; Nifty briefly slips below 23,400 amid CAS volatility
The Closing Auction Session (CAS) remained in focus during fag-end trade, with Nifty put options witnessing sharp moves within minutes. Nifty briefly slipped below the 23,400 mark during the indicative closing process, hitting a low of 23,374.70, before settling at 23,635.10.
- Sep 8, 2026,
- Updated Sep 8, 2026 5:06 PM IST
Indian equity benchmarks extended their decline for the second straight session on Tuesday, weighed down by selling across banking, financial services, energy and IT stocks. The 30-share BSE Sensex pack fell 555.23 points or 0.73 per cent to settle at 75,577.58, while the NSE Nifty50 index declined 144.05 points or 0.61 per cent to close at 23,635.10.
The Closing Auction Session (CAS) remained in focus during fag-end trade, with Nifty put options witnessing sharp moves within minutes. Nifty briefly slipped below the 23,400 mark during the indicative closing process, hitting a low of 23,374.70, before settling at 23,635.10.
Among the major Sensex laggards were ICICI Bank Ltd, HDFC Bank Ltd, Reliance Industries Ltd (RIL), Axis Bank Ltd, Bharti Airtel Ltd, Kotak Mahindra Bank Ltd, Larsen & Toubro Ltd (L&T), Sun Pharmaceutical Industries Ltd and UltraTech Cement Ltd.
The broader market, however, showed some resilience. Nifty Midcap100 rose 0.21 per cent, while Nifty Smallcap gained 0.17 per cent.
Vinod Nair, Head of Research at Geojit Investments, said mid- and small-cap stocks have delivered strong returns of 20–30 per cent since their respective 52-week lows recorded in April and March. He attributed the rally to recovering domestic inflows and value buying.
"Q1 results did point to improving corporate earnings, but sustaining this optimism may become challenging with crude oil prices breaching to $100 per barrel. While selective buying will remain, the ongoing elevated market volatility can persist in the near term, making it prudent for short-term investors to book partial profits," Nair also said.
He added that the recent outperformance of mid- and small-cap stocks could be difficult to sustain. "From a strategic perspective, a greater focus on large-cap stocks and non-equity ETFs appears safer. Sector-wise, defensive and deep-value areas such as healthcare, telecom, FMCG, diversified businesses, and IT can continue to provide an edge to the portfolio," Nair further stated.
Ponmudi R, CEO of Enrich Money, said Indian equities extended their decline amid elevated crude oil prices and geopolitical uncertainty. He noted that the India VIX (fear index) rose more than 1.6 per cent, signalling increased nervousness among traders, while bank and financial services stocks led the losses.
"The sustained pressure in benchmark indices reflects a combination of elevated crude prices, geopolitical tensions and concerns over the possibility of tighter global monetary conditions. Overall, the market remains in a 'sell-on-rise' mode, while DII buying remains the only real cushion preventing a sharper fall," Ponmudi stated.
What is CAS?
The Securities and Exchange Board of India (Sebi) introduced the Closing Auction Session on August 3 for determining the closing prices of stocks eligible for equity derivatives trading. The mechanism applies to around 200 such stocks.
Under CAS, eligible stocks enter a closing auction after regular trading, where buy and sell orders are matched to determine the closing price. Stocks without equity derivatives continue to use the volume-weighted average price (VWAP)-based mechanism for determining their closing prices.
Sebi has said the new mechanism is intended to improve price discovery and reduce the impact of last-minute orders on closing prices.
Nifty outlook
Ravi Singh, Chief Research Officer at Master Capital Services, said, "Markets remained under pressure. The formation of a long bearish candle near the crucial 23,600 support signals continued weakness, though a short-term bounce from 23,600–23,500 remains possible. Immediate resistance is placed at 23,800."
Indian equity benchmarks extended their decline for the second straight session on Tuesday, weighed down by selling across banking, financial services, energy and IT stocks. The 30-share BSE Sensex pack fell 555.23 points or 0.73 per cent to settle at 75,577.58, while the NSE Nifty50 index declined 144.05 points or 0.61 per cent to close at 23,635.10.
The Closing Auction Session (CAS) remained in focus during fag-end trade, with Nifty put options witnessing sharp moves within minutes. Nifty briefly slipped below the 23,400 mark during the indicative closing process, hitting a low of 23,374.70, before settling at 23,635.10.
Among the major Sensex laggards were ICICI Bank Ltd, HDFC Bank Ltd, Reliance Industries Ltd (RIL), Axis Bank Ltd, Bharti Airtel Ltd, Kotak Mahindra Bank Ltd, Larsen & Toubro Ltd (L&T), Sun Pharmaceutical Industries Ltd and UltraTech Cement Ltd.
The broader market, however, showed some resilience. Nifty Midcap100 rose 0.21 per cent, while Nifty Smallcap gained 0.17 per cent.
Vinod Nair, Head of Research at Geojit Investments, said mid- and small-cap stocks have delivered strong returns of 20–30 per cent since their respective 52-week lows recorded in April and March. He attributed the rally to recovering domestic inflows and value buying.
"Q1 results did point to improving corporate earnings, but sustaining this optimism may become challenging with crude oil prices breaching to $100 per barrel. While selective buying will remain, the ongoing elevated market volatility can persist in the near term, making it prudent for short-term investors to book partial profits," Nair also said.
He added that the recent outperformance of mid- and small-cap stocks could be difficult to sustain. "From a strategic perspective, a greater focus on large-cap stocks and non-equity ETFs appears safer. Sector-wise, defensive and deep-value areas such as healthcare, telecom, FMCG, diversified businesses, and IT can continue to provide an edge to the portfolio," Nair further stated.
Ponmudi R, CEO of Enrich Money, said Indian equities extended their decline amid elevated crude oil prices and geopolitical uncertainty. He noted that the India VIX (fear index) rose more than 1.6 per cent, signalling increased nervousness among traders, while bank and financial services stocks led the losses.
"The sustained pressure in benchmark indices reflects a combination of elevated crude prices, geopolitical tensions and concerns over the possibility of tighter global monetary conditions. Overall, the market remains in a 'sell-on-rise' mode, while DII buying remains the only real cushion preventing a sharper fall," Ponmudi stated.
What is CAS?
The Securities and Exchange Board of India (Sebi) introduced the Closing Auction Session on August 3 for determining the closing prices of stocks eligible for equity derivatives trading. The mechanism applies to around 200 such stocks.
Under CAS, eligible stocks enter a closing auction after regular trading, where buy and sell orders are matched to determine the closing price. Stocks without equity derivatives continue to use the volume-weighted average price (VWAP)-based mechanism for determining their closing prices.
Sebi has said the new mechanism is intended to improve price discovery and reduce the impact of last-minute orders on closing prices.
Nifty outlook
Ravi Singh, Chief Research Officer at Master Capital Services, said, "Markets remained under pressure. The formation of a long bearish candle near the crucial 23,600 support signals continued weakness, though a short-term bounce from 23,600–23,500 remains possible. Immediate resistance is placed at 23,800."