The stock market is bullish today, Friday, September 4. Sensex has climbed 450 points to reach 76600. Nifty increased by 50 points, it is trading at the level of 23950. There was a rise in the Asian markets today too. There was a decline in the American markets on September 3. Domestic investors bought shares worth Rs 14,226 crore in 7 days. There was a decline in the market yesterday. There was huge volatility in the stock market on Thursday, September 3. During indicative closing, Sensex suddenly slipped down to 2,100 points. However, in the final closing it fell by 417 points (0.55%) and closed at 76,153. Nifty also slipped 41 points (0.17%) and closed at 23,873. The put option of Rs 95 had reached Rs 446. On the day of expiry, Sensex was trading around 76,554 at 3:15 pm. At that time, the call option (CE) of 76,600 strike was at Rs 152 and the put option (PE) was at Rs 95. But by the time the closing auction session (CAS) ended at 3:30 pm, the Sensex came down to 76,152. Due to this sharp fall, the value of the call option became zero, while the put option of Rs 95 directly reached Rs 446. This sudden change resulted in huge profits for put buyers, while call writers and sellers suffered huge losses. What is CAS and how does it work? CAS has been implemented in the Indian stock market from August 3 this year. New rule: This is a short auction session at market closing time (lasting till around 3:40 PM). In this, buy and sell orders are matched to decide the official closing price of shares. Old rule: Earlier, the weighted average (VWAP) of the last 30 minutes (3:00 PM to 3:30 PM) was used to calculate the closing price. Global Practice: Regulators have implemented this new system to bring the Indian markets at par with the standards of Asian and global markets like China, Taiwan, Hong Kong and South Korea.
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Sensex rose by 450 points to reach 76600: Nifty also increased by 50 points, it is trading at the level of 23950.
