Business

Capital market stocks rise on CAS fix hopes, index closes 1% higher

By Sohail Khan 5 September 2026, 9:58 am

Benchmarks
Nifty23,897.7024.25

Precious Metal
Gold (MCX) (Rs/10g.)152,815.00-2960.0

Enter search text:

Business News›Markets›Stocks›News›Capital market stocks rise on CAS fix hopes, index closes 1% higher

Read Today's Paper

Capital market stocks rise on CAS fix hopes, index closes 1% higher
Synopsis

Capital market stocks saw gains Friday after regulator Sebi's circular on the Closing Auction Session mechanism. Trader pushback against CAS-linked settlement pricing prompted Sebi to respond to market concerns. Erratic settlement prints since August 3 caused option premiums to swing significantly. Market participants anticipate Sebi's paper will reduce reliance on the single CAS print. This move is expected to restore trader confidence and remove trading volume overhang.

Capital market stocks rise on CAS fix hopes, index closes 1% higher<br>

Capital market stocks gained Friday after the market regulator's latest circular on the Closing Auction Session (CAS) mechanism raised expectations of changes to the framework. The Nifty Capital Markets index closed 1% higher at 5,420, against the previous close of 5,357.20.

Among the biggest gainers, Angel One jumped 4.8%, MCX gained 3.3%, BSE rose 3.1%, Motilal Oswal Financial Services advanced 2.4%, while Billionbrains Garage Ventures (Groww) gained 2.2%. "The weeks of trader pushback against CAS-linked settlement pricing have finally prompted Sebi to respond, and that is what is driving capital market stocks," said Manish Bhandari, CEO and portfolio manager at Vallum Capital.

"Since the August 3 rollout, expiry-day auctions have produced erratic settlement prints, with derivative securities settling off the CAS close. This has caused option premiums to swing 400-500%. The August 13 episode, where thin auction-window liquidity allowed a few large orders to move prices sharply, triggered Sebi's interim order against two entities and crystallised industry concerns," he said.

ET Bureau

Market participants expect Sebi's consultation paper, due within a week, to reduce reliance on the single CAS print. "A credible fix would restore trader and investor confidence by delinking options settlement from the CAS-determined closing. This will also remove the overhang of reduced trading volumes for capital market companies," Bhandari said.

The introduction of CAS had created volatility around expiry-day settlement, prompting some traders and liquidity providers to scale back participation and contributing to a decline in derivatives volumes during August.

"Investors expect engagement between regulator and market participants for addressing concerns. Optimism is also driven by the view that the slowdown in volumes may prove temporary rather than structural," said Vinod Nair, reasearch head, Geojit Investments.

Add as a Reliable and Trusted News Source
Add Now!

(You can now subscribe to our ETMarkets WhatsApp channel)

(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

…moreless

(You can now subscribe to our ETMarkets WhatsApp channel)

Read More News on
Capital Market StocksSebi CAS MechanismNifty Capital Markets IndexMarket Regulator CircularClosing Auction Session Changesgrowwbseangel onebillionbrains garage venturesmcx

Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

…moreless

Enter search text:

BrowseCompanies:
ABCDEFGHIJKLMNOPQRSTUVWXYZ
123456789

Continue reading with one of these options:
Limited Access
Free
Login to get access to some exclusive stories

& personalised newsletters
Login Now

Unlimited Access
Starting @ Rs120/month
Get access to exclusive stories, expert opinions &

in-depth stock reports
Subscribe Now

Unlock Access to All Exclusives with ETPrime FREE TRIAL

15 Days Free: Unlock All ETPrime Exclusives, Market Tools & ePapers

Trial offer expiring in00 : 05 : 00

I'd rather pay ₹2599 now

Uh-oh! This is an exclusive story available for selected readers only.

Worry not. You’re just a step away.

Prime Account Detected!

It seems like you're already an ETPrime member with

Log out of your current logged-in account and log in again using your ET Prime credentials to enjoy all member benefits.

Unlock ETPrime's Exclusive Stories Today!

Subscribe to gain powerful insights on business, stock market and industry trends.

Big Price Drop! Flat 40% Off

Student Only Offer

Already a Member? Sign In now

Already a Member? Sign In now
Already a Member? Sign In now

Offer Exclusively For You

Save up to Rs. 700/-

ON ET PRIME MEMBERSHIP

Avail Offer

Offer Exclusively For You

Get 1 Year Free

With 1 and 2-Year ET prime membership

Avail Offer

Offer Exclusively For You

Get 1 Year Free

With 1 and 2-Year ET prime membership

Avail Offer

Offer Exclusively For You

Get Flat 40% Off

Then ₹ 1749 for 1 year

Avail Offer

Offer Exclusively For You

ET Prime at ₹ 49 for 1 month

Then ₹ 1749 for 1 year

Avail Offer

Special Offer

Get flat 40% off on ETPrime

Avail Offer
Avail Offer

Claim NowAlready a Member? Sign In now

Need Assistance?

Connect with an ETPrime expert for personalized support and guidance

+91 9484700004

' + h3 + '

' + h4 + '

' + listing + '

What’s Included with

ETPrime Membership

1Exclusive Insights That Matter

Uncover the truth with our investigative stories

Make strategic moves using the real-world case studies

Read industry-specific stories to identify emerging trends

Spot opportunities with in-depth insights that matter

Trump temper on H-1B visas is forcing Indians to do these things to stay put in US

What Adani’s US indictment means for India Inc’s overseas fundraising
Why veterans like Reliance, L&T are on acquisition spree? Aswath Damodaran has an answer.

Will China’s dollar bond sale in Saudi Arabia trump the US in financial world?
Huawei launches its own OS to compete with Google and Apple. But can it win beyond China?

The problem with lab grown diamonds
Why a falling rupee is a better option for the economy

A list of top 20 momentum stocks that have delivered massive returns in one year