Stock market timings in India: Best time to trade
It is seen that the stock market is a vital cogwheel in the economic machine because it serves as a market for share, bond, stock and some other things. Any person who would need to invest in these shares or buy any stocks need to make sure that he or she can find out when the market opens and when it closes. Today, the stock market in India is still working in a fixed timetable that follows the regulation of SEBI. Thus, in this blog, I would be able to pen down about the timings on the stock of Indian market, the different sessions, their importance and the indications that define the trading time.
Initially certain general information regarding the Indian stock market will be shared.
Bombay Stock Exchange (BSE):
It is among the oldest stock exchanges and is situated in Asia having been formed in 1875. It is a financial exchange headquartered in Mumbai and is involved in the buying and selling of financial assets like equities, bonds, ETFs, mutual funds and among others.
National Stock Exchange (NSE):
NSE was pioneered in 1992 and over time graduated to one of the most efficient Technologically driven stock market floors and is today among the largest stock markets of the country of India. Therefore at the NSE the adaptation of electronic trading was employed hence causing a huge boost in stock trading in the country.
Because BSE and NSE, like any other stock exchange, are in operation during the similar trading session, they have to adhere to the similar timing schedule.
Key Stock market timings India
| Sessions | Times |
| Pre-opening session | 9.00 a.m. – 9.15 a.m. |
| Trading session | 9.15 a.m. – 3.30 p.m. |
| Closing session | 3.40 p.m. – 4.00 p.m. |
The Best time to trade in Indian Stock Market is divided into three main sessions:
As for the Indian market, it is accessed into three primary sessions.
- Pre-Opening Session
- Regular Trading Session
- Post-Closing Session
Everyone has its place in the market having a pre-planned schedule of their exercise.
1. Pre-Opening Session
The pre-opening session comes before the trading session with the aim of establishing the opening of the securities via bidding. This session has the responsibility of reducing the up and down movement and uncertainty especially when the market reverts to the normal trading session.
Timing: 9:00AM – 9:15AM
Duration: 15 Minutes
The pre-opening session is further divided into three parts:
Order Entry Period (9:00 AM – 9:08 AM): At this level, the investors are free to place their orders for the purchase as well as selling of securities. That is, changes to the order and cancellation of an order are also possible.
Order Matching Period (9:08 AM – 9:12 AM): In this period the stock exchange sells and buys stocks depending on the supply and demand prices with aims to set an opening price.
Buffer Period (9:12 AM – 9:15 AM): They found out that this period acts as a transition period from the opening session to the normal trading session.
Examining the price at which a stock is priced at the start of the day, call auction is used to find out the price that ensures that a maximum tradable quantity of a security is available. This price then forms the stock’s opening price for the trading session on the particular day.
2. Regular Trading Session
Of all the options, the most popular by far is the regular trading session in which most trading occurs. This period witnesses activities of traders and investors who trade in shares while the price of the equities is dictated by the demand and supply forces.
Timings: 9:15 AM to 3:30 PM.
Duration: 6 hours 15 min
The regular trading session comes in the form of a CIS and therefore, the orders entered into the system are matched in real time. This system is very efficient and it can also allow prices to be made continuously and in the interest of the short term traders and long term shareholders.
The regular session is available to all types of market players ranging from the small investor to the large institutional investor as well as traders. It is a pretty active period for the market and prices here tend to swing depending on the company’s news, global markets, economic numbers and the mood of the investors.
3. Post-Closing Session
The post-closing session is divided into two segments in Stock market timings in India:
- Timings: 3:30PM – 4:00PM
- Duration: 30 Mins
Closing Price Calculation (3:30 PM – 3:40 PM): The closing price is established during this period using the formula which involves the average of all certain trades made within the last half an hour till the period of closing of the particular trading session.
Post-Closing Session (3:40 PM – 4:00 PM): With reference to this phase, investors can place their order at night and eventually close their order at the price of the current stock. This session is mainly adopted by institutional traders and long-term holders who want to make trades during the last sale which does not affect the prices.
Commodity Market Timing in India
Nevertheless, it has to be mentioned that the commodity market works on a different schedule as the stock market. The major commodity exchanges, which are in India include the Multi Commodity Exchange (MCX) and the National Commodity and Derivatives Exchange (NCDEX) and these two exchanges have their trading sessions.
Morning Session: From 9:00 AM to 5:00 PM.
Evening Session: 5 pm to 11:30 pm (11:55 PM during the day saving in the US)
Financial markets particularly the commodity markets trading sessions are known to work for many hours longer than the normal business day because of influence from the US and European markets.
Trading Holidays
In addition to the weekly opening and closing times the Indian stock market is closed on national holidays and some other public holidays. The closing and commencement dates of the holidays are also released by BSE and NSE at the start of each year.
Some common holidays when the stock market timings india remains closed include:
- Republic Day (January 26)
- Independence Day (August 15)
- Diwali (Lakshmi Puja)*
- Christmas (December 25)
Diwali is also known as the ‘Lakshmi ” or”Laxmi “ Festival, and since trading and business is an important segment of Indian society, the stock market opens up for a special Muhurat Trading session which is normally one hour in the evening. It is the one that is conducted in a special way and performed usually as a ritual to attract and to gain wealth.
Effect of Global Markets on Indian Stock Market Working Hours
However, the stock market of India has its routine time but global events and the operations of global stock markets like the US, European and Asian stock markets affect a lot during trading time. This happens mostly when the news or the developments in the foreign markets are concurrent with the local Indian market.
For instance:
- US Markets: The stock exchanges in the US including New York Stock Exchange (NYSE) are during the night time according to the Indian Standard Time (IST). Even a large change that occurs during the previous night in the US markets will have an effect on the Indian stocks the next morning.
- Asian Markets: Markets in Japan, China and Hong Kong start trading earlier than the Indian markets and thus impact the early sentiment in the Indian stock exchanges.
Extended Hours Trading in India: The Future?
As mentioned earlier, many of the developed markets offer after trading hours or after hour trading for institutional investors as well as traders. In India, there were debates with the intention of increasing the trading hours in the equity markets so as to be on par with international markets to provide flexibility. But the problems are there in operational readiness, higher dependability on the market and requirement for more attention from the regulatory authorities.
To the present, there are no concrete decisions that have been made, although SEBI has been receiving proposals regarding extension of trading hours which may lead to the change of the present structure of stock exchange timings in the future.
Best time to trade in Indian Stock Market
A lot of people trade in the stock market, but there is the best stock market timings india. Well, this is an obvious one because in trading, especially in day trading or any kind of short term trading, timing is key. Although the stock market is operational for more than six hours each day, some hours are characterized by increased and high fluctuations as compared to others.
Here’s a breakdown of the best times to trade:
Opening Hour (9:15 AM – 10:30 AM): It could also be the most volatile period as it reflects response to overnight news and events. The one hour of trading time is a very good time for those to make high profits as they trade.
Mid-Day Trading (12:00 PM – 2:00 PM): This is typically the quiet time of the day with little changes in price as compared to the opening and closing time. That is because prices of these stocks tend to stabilize meaning long-term investors might find better opportunities here.
Closing Hour (2:30 PM – 3:30 PM): The last trading of the day has high fluctuations due to traders offsetting their positions ahead of the market’s closing. They can be favorable for day traders to make the best out of the fluctuations in the prices of the stocks.
Conclusion
Knowledge of Stock market timings India helps a lot as far as the trading or investing in the stock market is concerned. Indian stock market having set time sessions that has been appropriately segmented and designed to accommodate and meet the needs of different categories of investors. As it relates in the current trading hours, there are enough opportunities for both the short term and long-term investor, future trading hours also help improve the market accessibility and its liquidity.
Regardless of how long you have been dealing with the stock market or whether you are new to it, having a good understanding of the market timings can go a long way in helping you in your endeavors and therefore increase your chances of being successful in the stock market.
Also Read : Best stocks to buy today under 100 Rs
FAQ'S
What are stock market timings india ?
The Indian stock market is divided into three main sessions:
Pre-Opening Session (9:00AM – 9:15AM)
Regular Trading Session (9:15AM – 3:30PM)
Post-Closing Session (3:30PM – 4:00PM)
Stock market open time in india ?
Indian Stock market opens for market trading at 9:15AM from Monday-Friday
Stock market closing time in india ?
Regular Stock market closes at 3:30PM for trading but the commodity market is open until 11:30PM.
What is the best time to trade in the Indian Market ?
- Opening Hour (9:15 AM – 10:30 AM)
- Mid-Day Trading (12:00 PM – 2:00 PM)
- Closing Hour (2:30 PM – 3:30 PM)
