Nifty monthly expiry meets CAS today: Why the last 30 minutes of the Tuesday trading session could be most important
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓Nifty futures and options contracts expire today, leading to expected market volatility.
- ✓The Closing Auction Session, introduced on 3 August, often causes sharp price swings.
- ✓SEBI said in a 12 September consultation paper that it proposed a revamp of the settlement methodology to make the price discovery process more transparent.
Story at a Glance
- Category
- MARKET
- Reported By
- Livemint
- Reading Speed
- 4 Minute(s)
- Market Focus
- India Economy
Market participants should brace for heightened volatility in the second half of Tuesday’s trading session as both weekly and monthly futures and options (F&O) contracts expire today. Nifty derivative contracts typically expire on the last Tuesday of every month. If the scheduled expiry day is a trading holiday, the expiry is moved to the preceding trading day.
The expiry of derivatives contracts is nothing new, but the closing auction session (CAS) is. CAS, introduced on 3 August this year, has led to unexpected price swings and market uncertainty, prompting the Securities and Exchange Board of India (Sebi) to propose a revamp of the settlement methodology for derivatives contracts.
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