Mumbai: Following the introduction of a new auction mechanism for stocks with futures and options contracts, the Indian stock market indices Sensex and Nifty, which had been rising continuously for the past four days, ended lower today.
The 'closing auction mechanism' in the stock market's 'equity cash' segment came into effect from today. With the aim of making price changes more transparent, a new auction-based procedure has been introduced to determine the final price of eligible stocks. Following the introduction of this new auction system, stock market indices followed a volatile trend in the early stages of trading today.
In today’s morning trading, the Sensex touched a high of 79,143.15 points and a low of 78,211.87 points. In other words, it saw a swing of up to 931.28 points. The 30-stock Sensex fell 210.08 points to 78,428.95 points, while the 50-stock Nifty, which traded in the red throughout the day, declined 159.40 points to settle at 24,614.90 points.
Yesterday (Monday), the Sensex rose for the fourth straight day, gaining 544.39 points to close at 78,639.03 points, while the Nifty ended 390.70 points higher at 24,774.30 points.
Following today’s weekly contract expiry and the implementation of a new procedure for determining the final price in the futures and options segment, the stock market saw some volatility in its trend.
In the Sensex, shares including Hindustan Unilever, NTPC, HDFC Bank, Reliance Industries, InterGlobe Aviation, and Tech Mahindra fell, while shares of Trent, Bajaj Finance, Bharat Electronics, and Tata Steel rose. The Nifty Midcap index fell 0.3 percent, while the Smallcap index rose 0.2 percent.
Based on stock market data, foreign institutional investors purchased shares worth Rs 922.26 crore.
As for Asian markets, South Korea’s Kospi, Japan’s Nikkei 225, and Shanghai’s SSE Composite Index ended higher. Meanwhile, Hong Kong’s Hang Seng Index ended lower.
European markets traded mostly higher. U.S. markets closed with notable gains yesterday (Monday).
Internationally, Brent crude oil prices rose by 2.49 percent to $85.86 per barrel.
