India's new closing system absorbed a record $4.2 billion of stock trades linked to MSCI Inc. index rebalancing on Monday. Yet the sharp price swings that have plagued it since launch persisted, underscoring a key challenge to its long-term success: the lack of market makers. Turnover in the 20-minute window on the National Stock Exchange of India, the country's top bourse, was 33 times the daily average since the system's Aug. 3 debut.

Even so, about 60 stocks exited the auction at their 3% price limits, with sharp swings in names including Eternal Ltd., Adani Enterprises Ltd. and Reliance Industries Ltd.