Mumbai, Aug. 4 -- The introduction of the Closing Auction Session (CAS) by the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) for stocks with underlying derivative contracts witnessed limited participation on its first day, although Goldman Sachs expects activity to increase in the coming sessions as institutional investors gradually adapt to the new mechanism.

In a report analysing the first day of implementation, Goldman Sachs said the median auction volume participation across all eligible stocks stood at just 1.7 per cent, significantly lower than the median 16.3 per cent participation seen in the previous one month during the conventional market close.

"The median auction volume participation of all stocks in the clo...