Indian equity markets are expected to begin Tuesday on a cautious note after the introduction of the new Closing Auction Session triggered significant volatility toward Monday’s close. GIFT Nifty was indicating a softer opening, while investors assessed the impact of the revised mechanism on price discovery and trading activity. The Nifty had gained 1.6% on Monday, while the Sensex rose 0.7%.
Under the new system, continuous trading ends at 3:15 pm, followed by a 20-minute closing auction. Market participants are watching the new framework closely because concentrated institutional activity during the final minutes could lead to sharper price movements, particularly around derivatives expiry. Investors are therefore likely to remain cautious until the new mechanism settles into a more predictable pattern.
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