Why Nifty and Sensex diverged after launch of new auction mechanism
The National Stock Exchange's new Closing Auction Session led to divergent closing prices for the Nifty and Sensex in its first two days, with Nifty rising 1.60% and Sensex only 0.70%. This mechanism replaces the previous volume-weighted average price method with a 20-minute auction aimed at enhancing transparency and reducing price manipulation. The strong participation of 515 trading members and 56,773 unique PAN holders indicates initial acceptance of the change among investors.