The Nifty 50 saw sharp volatility as the new closing‑price auction mechanism took effect, with the index 24,614.9 points at 3:35 p.m. – a 0.6% drop from the opening of the 20‑minute auction. Earlier, at 3:15 p.m., the Nifty was 1.25% lower at 24,463.45 points, while the BSE Sensex slipped 0.3%, creating a rare two‑day divergence. The 20‑minute window that replaces the former volume‑weighted average price model leaves traders blind to where the index will close, prompting calls for fixes.

Senior vice president Rajesh Palviya of Axis Securities said the volatility points to systemic issues, while Santosh Meena of Swastika Investmart noted that institutional buy orders concentrate on the more liquid NSE during the auction, lifting heavyweight constituents. Geojit Investments head Vinod Nair echoed concerns over the gap in closing levels.

The new auction is affecting options premiums, leading to unexpected gains and losses for some traders. The Association of NSE Members is engaging exchanges and the Securities and Exchange Board of India to address the discrepancies and strengthen the framework.