India's first weekly derivatives expiry under the new closing auction system did little to ease concerns about the new mechanism after the benchmark NSE Nifty 50 Index again moved sharply during the auction, after surprising traders on Monday.

The new closing auction system, introduced to enhance market stability, has instead created volatility during the critical expiry period. Traders expressed frustration as the Nifty 50 continued its pattern of sharp movements during the auction phase, mirroring the previous week's unexpected behavior.

Market participants had hoped the new mechanism would provide more predictable pricing during derivatives expiry. Instead, the NSE's implementation has led to increased uncertainty, with the benchmark index experiencing significant swings that caught many off guard.

The ongoing issues highlight challenges in rolling out major market structure changes, particularly during high-volume periods like weekly derivatives expiry. Traders are closely watching whether the closing auction system will stabilize in coming weeks or continue generating unexpected volatility.