Nifty's indicative price plunges 2% in seconds on expiry day, then recovers

Nifty's indicative price plunged 2% within two seconds during the closing auction session on monthly expiry day, dropping from 22,684 to 22,249 before rapidly recovering to close above pre-auction levels. The sharp 435-point decline occurred at 3:20:01 during the CAS window, followed by a full recovery to 22,716. Nifty ultimately lost 64 points or 0.28% on Tuesday, while Sensex fell 243 points to 72,529, with technical charts remaining weak. The CAS system, introduced in August for F&O stocks, has caused repeated volatility on expiry days despite Sebi's firm stance on retaining it. Markets face additional pressure from crude price volatility, high US Treasury yields, FII outflows, and rapid IPO fundraising.