BSE Sensex trades in green, Nifty50 slips in red: Why benchmark indices moved opposite?

Indian stock market indices Nifty50 and BSE Sensex diverged due to a new closing auction session. This new mechanism replaced the volume-weighted average price for price discovery. The exchange clarified that this divergence was not an anomaly but a result of the new process. The closing price is now determined by an equilibrium price mechanism which maximizes trading volume. Market participants showed encouraging participation in the inaugural closing auction session.