Closing auction session volumes surge on NSE after MSCI rejig
NSE's CAS turnover surged to Rs 39,718 crore, nearly 22 per cent of cash-market turnover, as MSCI rebalancing triggered sharp price swings in dozens of stocks
The National Stock Exchange of India's Closing Auction Session (CAS) saw a significant surge in turnover on Monday, reaching Rs 39,718 crore. This accounted for 22 per cent of the total cash market turnover, according to The Economic Times and Business Standard. The session's turnover was around 42 times that of the previous trading session.
The CAS coincided with the implementation of the MSCI August 2024 Index Review, which triggered sharp price swings in dozens of stocks. The NSE commanded a 99.9 per cent market share in the CAS, with over 98,000 unique investors participating in the session. This was the first major index rebalancing after CAS was introduced in the Indian capital markets.
The strong turnover in the CAS demonstrated that index funds and passive investors executed their rebalancing trades through the mechanism, as per The Economic Times. The CAS is a call auction mechanism used to determine the closing price of securities. Business Recorder reported that MSCI's quarterly index changes added four Indian stocks to its Global Standard index and removed three, effective September 1.
Brief written by urgent.news from Business Standard IN, The Economic Times - Top News, Business Recorder — 3 reports on this story. Machine-written — may contain errors; check the original before relying on it.
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