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Stock Market Timings In India

9 Mins 15 Mar 2024 0 COMMENT
stock market timings in India

 

The Indian stock market timings refer to the specific hours during which trading activities take place on the country's major stock exchanges, namely the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). The trading day is divided into different segments, each serving a particular purpose, and catering to different categories of market participants.

  • The Pre-Opening Session, also known as the pre-market session, occurs before the regular trading hours. During this session, market participants can place orders, which helps discover the opening price of securities and facilitates price discovery.
  • Regular Trading Hours comprise the main trading session, where buyers and sellers actively engage in buying and selling securities. The regular trading session is further divided into different segments, such as the morning and afternoon sessions, with a break in the middle for lunch.
  • The Post-Closing Session, also known as the post-market session, allows participants to continue trading after the regular trading hours. However, the volume during this session is generally lower compared to the main trading session.

Traders and investors need to be aware of these timings as they dictate when orders can be placed and when the market is open for trading. Understanding these timings helps market participants strategize their trades effectively and capitalize on market opportunities.

Timing Segments In Share Market:

Pre-Opening Session (09:00-09:15): 

During this time, traders and investors can place orders to purchase and sell securities. This session lasts from 9:00 AM to 9:15 AM on weekdays. It can be further classified into three sessions:

9:00 – 9:08 AM session:

During this stock market opening time, any transaction for an order can be placed. However, the order is only given preference when the trading time actually begins. All orders are cleared off in the beginning. The trader can request to cancel or change their order according to their needs. All orders must be placed before the 8-minute period during the pre-opening session.

9:08- 9:12 AM session:

This segment is responsible for determining the price of a security. It is done by corresponding the demand and supply of the security to ensure accurate transactions among investors wanting to sell or purchase a security. This process of corresponding is also known as price matching order. The determination of the final prices of the securities begins during the regular stock market timing and is done through a multilateral order matching system. However, the benefits of modification of an order cannot be availed during this session.

9:12-9:15 AM session:

This is the transition period between pre-opening and regular share market timing. During this period, traders and investors are not allowed to place any additional orders for transactions. Any already existing orders placed from 9:08 AM to 9:12 AM cannot be cancelled.

Regular Trading Hours (09:15-15:30)

  • During the trading session, traders and investors can actively engage in buying and selling securities, which starts at 9:15 AM and ends at 3:30 PM. The transactions made during this time follow the bilateral order matching system, which determines the price of a security based on the forces of supply and demand.
  • To prevent the volatility caused by the bilateral system from affecting the price of securities, the pre-opening session uses a multilateral system instead. This helps to ensure a more stable market environment.

Post-Closing Session (15:30-16:00)

The closing time for the Indian stock market is set for 3:30 PM. After this period, no exchanges would be conducted. During the trading session, the closing price of securities is determined, and this value significantly impacts the opening security price of the following day.

This session can be divided into two segments:

3:30-3:40 PM:

The closing price is calculated by taking the weighted average of the securities trading prices between 3:00 PM and 3:30 PM in a stock exchange. To calculate the closing prices of the benchmark and the sector, indices such as Nifty, Sensex, S&P Auto, etc., the listed securities' weighted average prices are considered.

3:40- 4:00 PM:

The post-stock market closing time is the period during which bids for the following day's trade can be placed. Once placed, these bids are confirmed, provided there are enough buyers and sellers in the market. These transactions are completed at a pre-determined price, regardless of any changes in the opening market price.

After Market Hours in Stock Market:

As the name suggests, after-market hours trading refers to trading beyond the usual market timings. This usually takes place between 4:00 PM to 8:55 AM. However, this depends on the type of security available and the type of orders. Most investors look forward to after-market hours trading mainly to explore the opportunities with after-market hours trading. It is a convenient feature that helps investors place orders after the stock market is closed. It also presents an opportunity for investors to take advantage of market news. One can even conduct technical analysis on the stock chart and create hypothetical predictions on the opening price for the next day.

Exceptions In Stock Market Timings

Muhurat trading is considered a lucky time to trade stocks in India, especially during Diwali. It said that the stars align favorably for good results during this auspicious one-hour period. People also believe that if they trade during this time, they have a better chance of making money and having a prosperous year ahead. In contemporary times, the ritual has taken on a symbolic meaning, with individuals offering prayers to Goddess Lakshmi and investing in robust companies to achieve long-term financial gains.

The Muhurat trading session starts at 6:00 PM and ends at 7:35 PM for equity-related products. However, derivatives can only be traded until 7:15 PM.

Conclusion

Understanding Indian stock market timings is essential for traders and investors who are trying to navigate the complex world of securities trading. With pre-market, regular trading, and post-market sessions, understanding when to place orders and when the market is active is crucial. These timings dictate the flow of the stock market for that particular day, influencing price discovery and market trends. By staying informed and aligning various strategies with these timings, market participants can optimize their trading decisions and seize opportunities for financial growth.