Distortions are inevitable: Nithin Kamath explains why new closing auction is causing wild moves in Indian stocks

Zerodha co-founder Nithin Kamath said the sharp swings under the new Closing Auction Session (CAS) reflect structural weaknesses in Indian markets rather than flaws in the mechanism itself. The new 20-minute auction, replacing the earlier VWAP-based close, has caused unpredictable late-day moves and losses for options traders and algo desks, fuelling calls for changes or a rollback.