Investors were caught off guard during Tuesday’s trading session when the Nifty index saw its indicative price plummet by 2% in a mere two seconds. At precisely 3:20:01 PM, the benchmark slipped from 22,684 to 22,249, triggering alarm across the trading floor.
This sharp decline occurred during the sensitive Closing Auction Session (CAS), a period often prone to liquidity shifts. However, the drop proved to be ephemeral, as the index staged a lightning-fast recovery to settle above its pre-flash levels shortly after the glitch-like event.
Market experts attribute the jittery price action to the heightened volatility typical of monthly F&O expiry days. While the intraday swing caused significant concern, the broader market impact remained contained.
By the closing bell, the Nifty index finished the day down 64 points, or 0.28%. Despite the mid-session drama, the market maintained relative composure as traders accounted for the expiry-related pressure.
