Last Updated:
Selling intensified soon after when the CAS started, with the Sensex showing indicative losses of around 2,400 points, before recovering to 76,933.59.
The Sensex had remained relatively range-bound for much of the session before the sudden fall in the final minutes.
Stock Market Today, August 27: The benchmark BSE Sensex witnessed a sharp and unusual swing in the final minutes of trade on Thursday, with the index showing an indicative decline of as much as 2,400 points during the closing auction session (CAS), as expiry-related volatility intensified. The BSE benchmark finally settled at 76,933.59, down 539.35 points or 0.70 per cent, while the Nifty fell 116.90 points or 0.48 per cent to close at 24,090.85.
The Sensex was trading in the range of 77,180-77,200 at around 3:15 pm, when the regular trading session ended. However, selling intensified soon after when the CAS started, with the Sensex showing indicative losses of around 2,400 points, before recovering to 76,933.59.
It led to wild swings in derivative prices in the Sensex’s first monthly expiry after CAS. For instance, put option of 77,200 skyrocketed from nearly Rs 54 to Rs 499 within just 10 minutes, between 3:19 pm and 3:27 pm.
The sharp move came on the Sensex monthly expiry, adding to the volatility around the closing auction. The Sensex had remained relatively range-bound for much of the session before the sudden fall in the final minutes.
The closing volatility was particularly notable because the broader market did not witness a comparable late-session collapse. The Nifty closed at 24,090.85, down 116.90 points or 0.48%, after moving between an intraday high of 24,297.45 and a low of 24,090.85.
Vinod Nair, Head of Research, Geojit Investments, said, “Expiry-led volatility and the lack of a diplomatic breakthrough in the Middle East continue to keep markets range-bound in the near term. While a degree of higher energy prices is largely factored into earnings expectations, the recent moderation in crude oil prices and long-term bond yields is supporting the inflation outlook. Meanwhile, FII inflows and resilient earnings momentum remain supportive for Indian equities, particularly mid-caps, where several segments are relatively insulated from global uncertainties and continue to benefit from strong domestic demand trends.”
He added that investors will also closely watch the Fed chair’s upcoming Jackson Hole address for signals on inflation, interest rates, and the policy outlook, which could influence global risk sentiment and capital flows into emerging markets.
The market’s sectoral performance remained mixed. Nifty Cement was the worst-performing major sectoral index, falling 1.33%, while Nifty PSU Bank declined 0.94%, Nifty Metal slipped 0.86% and Nifty Oil & Gas fell 0.80%. On the other hand, Nifty Pharma gained 0.84%, Nifty Healthcare rose 0.73% and Nifty Consumer Durables advanced 0.72%.
The sharp late-session move on the Sensex highlights the heightened volatility that can emerge around the closing auction, particularly when it coincides with derivatives expiry. While the index recovered somewhat from the day’s extreme move after hitting the low, it remained significantly below its pre-CAS levels and ended the session at its day’s low.
Quick Answers
Ask News18The sudden 2,400-point indicative drop in the Sensex was caused by expiry-related volatility during the closing auction session (CAS) on Thursday.
Ask News18About the Author
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalis…Read More
August 27, 2026, 4:01 PM IST
Read More
Source link
[ad_3]
