Nifty experiences sharp two-percent drop during closing auction session

Nifty saw its indicative price drop by two percent in just two seconds during the closing auction session on monthly expiry before making a sharp recovery. Market experts pointed to multiple pressures affecting trading conditions. These pressures include crude oil price changes, high US Treasury yields, foreign institutional investor outflows, funds raised through initial public offerings, and ongoing geopolitical tensions.

Context

Market fluctuations during monthly expiry sessions often create sudden price movements as traders square off their positions. External factors like global oil prices and foreign fund flows regularly impact domestic stock exchange trends.