The Nifty ended at 24,774.30, up 390.70 points or 1.60%, following a late surge of 0.8% at around 3:28 PM. The Sensex ended at 78,639.03, up 544.39 points or 0.70%. Usually, the difference in percentage gains between the indices is not more than 5-10 basis points.
Read more: 200 point-jump in 2 minutes: Why Nifty made a surprising surge before closing bell
The new closing auction system changes the way the official closing prices of stocks in the futures and options (F&O) segment are determined. Until last week, the closing price-used to calculate index closing levels, value mutual fund portfolios and settle derivatives contracts-was based on the volume-weighted average price (VWAP) of trades during the last 30 minutes of trading. From Monday, the closing price is determined through a separate closing auction, a move aimed at making the closing price more robust and less susceptible to the impact of large last-minute orders.
"The intention of launching the closing auction is the step in the right direction but clearly, there seems to be a missing link in its implementation going by how prices have played out on the first day," said Siddarth Bhamre, head of institutional research at Asit C. Mehta Investment Intermediates. The new system is likely to face its first major test on Tuesday, when NSE's weekly derivatives contracts expire. Traders will be watching closely to see how the closing auction influences settlement prices.
institutional buy orders in Nifty heavyweight stocks emerged during the closing auction, pushing up their closing prices and lifting the index disproportionately.
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(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)
Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today.
Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price