Following the introduction of a new auction process for shares in futures and options contracts, the NSE Nifty’s movement appeared unusual for the second consecutive day, and the index surprised investors with a massive jump in the final moments. In the same vein, the rally that had been continuing for the past four trading sessions also came to a halt on Tuesday. While the BSE Sensex fell by 210 points, the NSE Nifty fell by 159 points.
It is noteworthy that the closing auction session (CAS) in the cash equity segment began on Monday. A new auction-based system has been implemented to determine the closing prices of eligible shares. This aims to make the price discovery process more transparent and robust.
Following the introduction of a new auction system in the stock markets, an unusual divergence was observed between the Sensex and Nifty on Monday, despite the fact that the two major indices typically move in a similar fashion. The Nifty surprised everyone by jumping nearly 200 points in the final five minutes. However, market experts believe this divergence is related to market dynamics and not a sign of any major shift in fundamental factors.
Nifty corrected 150 points in the last three minutes
Looking at today’s trading, the major indices initially traded with a mixed trend. While the Sensex crossed the 79,000 mark, opening with a jump of nearly 500 points at 79,132.97, it later started falling, while the Nifty opened with a decline of nearly 70 points at 24,703.90 and remained in the red throughout the day. However, as on Monday, the index surprisingly recovered by nearly 150 points within the last three minutes.
Sensex lost 210.08 points to close at 78,428.95
The 30-share sensitive index Sensex of Bombay Stock Exchange (BSE) after losing its initial gains, closed at 78,428.95, down by 210.08 points or 0.27 percent. During the trading, the index went up to 79,143.15 points while it went down to 78,211.87 points. That is, it fluctuated by 931.28 points during the trading. Among the companies associated with Sensex, stocks of 13 rose while there was weakness in 16.
Nifty closed at 24,614.90, down 159.40 points.
At the same time, the National Stock Exchange’s (NSE) 50-share benchmark index Nifty remained in the red throughout the trading session and finally closed at 24,614.90 points, down 159.40 points, or 0.64 percent. At one point during the trading session, it fell 346.35 points, or 1.39 percent, to a low of 24,427.95 points. Among Nifty-affiliated companies, shares of 14 remained in the green, while 35 registered a decline.
Looking at the broader market, the BSE Smallcap Select index, comprising smaller companies, rose 0.25 per cent, while the Midcap index, comprising mid-sized companies, fell 0.29 per cent.
The insurance sector saw the biggest decline of 2.09 percent.
Among the sectoral indices, the insurance sector fell the most by 2.09 percent. It was followed by realty sector by 1.18 percent, housing finance by 1.17 percent, public services companies by 0.64 percent, FMCG (companies manufacturing daily use goods) by 0.56 percent, energy sector by 0.39 percent, top-10 bank index by 0.38 percent, private bank index by 0.34 percent and IT sector by 0.33 percent. On the other hand, commodities, discretionary consumer spending, industrial, capital goods and public sector bank indices were among the sectors that registered gains.
Hindustan Unilever shares fell the most by 1.70%
Hindustan Unilever was the biggest loser among Sensex companies, falling 1.70 percent. NTPC, HDFC Bank, Reliance Industries, InterGlobe Aviation, and Tech Mahindra were among the losers. Meanwhile, Trent, Bajaj Finance, Bharat Electronics, and Tata Steel were among the gainers.
FIIs bought shares worth Rs 922.26 crore
Foreign institutional investors (FIIs) bought shares worth ₹922.26 crore on Monday, according to stock market data. Global oil benchmark Brent crude rose 2.49 percent to $85.86 per barrel.