CLOSED
Zerodha co-founder Nithin Kamath said the sharp swings under the new Closing Auction Session (CAS) reflect structural weaknesses in Indian markets rather than flaws in the mechanism itself. The new 20-minute auction, replacing the earlier VWAP-based close, has caused unpredictable late-day moves and losses for options traders and algo desks, fuelling calls for changes or a rollback.
Distortions are inevitable: Nithin Kamath explains why new closing auction is causing wild moves in Indian stocks
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Zerodha co-founder Nithin Kamath said the sharp swings under the new Closing Auction Session (CAS) reflect structural weaknesses in Indian markets rather than flaws in the mechanism itself. The new 20-minute auction, replacing the earlier VWAP-based close, has caused unpredictable late-day moves and losses for options traders and algo desks, fuelling calls for changes or a rollback.
Key Highlights
Zerodha co-founder Nithin Kamath said the sharp swings under the new Closing Auction Session (CAS) reflect structural weaknesses in Indian markets rather than flaws in the mechanism itself.
The new 20-minute auction, replacing the earlier VWAP-based close, has caused unpredictable late-day moves and losses for options traders and algo desks, fuelling calls for changes or a rollback..
Source
Economic Times
Published
2h ago
Impact Score
70 / 100
Category
Indian Markets
Moderate near-term volatility expected while markets assess implications for Indian Markets.
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