A sharp and sudden movement in the Sensex during Thursday’s closing session has sparked a debate among traders, with one trader claiming that a Rs 1 lakh investment in a Sensex put option could have turned into Rs 44 lakh in just five minutes.
A dramatic swing in the Sensex during Thursday’s Closing Auction Session (CAS) has sparked intense debate among traders after a market participant claimed that a hypothetical Rs 1 lakh investment in a Sensex put option could have generated Rs 44 lakh in just five minutes.
The claim, shared on X, was based on a hypothetical trade. The sudden moves were not limited to the index. HDFC Bank, ITC and Bharti Airtel also saw large price movements during the closing period. The volatility has raised questions about the impact of the new Closing Auction Session on trading near the market close.
If an investor had bought Sensex 76,500 put options worth Rs 1 lakh at 3.15 pm and sold them at 3.20 pm, the position could have yielded a profit of around Rs 44 lakh, according to the trader. However, the original post appears to contain a typo, mentioning 3:15 AM instead of 3:15 pm. The index eventually closed at 76,934, down 539 points from Wednesday’s close. Reliance Industries, the stock with the highest weight in the Sensex, fell from around Rs 1,289 to Rs 1,250 in just seven minutes, before recovering sharply to close at Rs 1,286. The Bombay Stock Exchange introduced CAS on August 3 as a new method for determining closing prices, with the aim of reducing the possibility of price manipulation. The system now applies to around 200 stocks on which equity derivatives are traded.
Other stocks continue to use the earlier volume-weighted average price method.
