Indian Stock Market Timings

Trade in the stock market can only be undertaken during a specific time interval in India

Introduction

[Quick summary explaining what the blog post will cover]

1. Pre-Open Session Timings
2. Regular Trading Session Timings
3. Closing Session Timings
4. Block Deal Session Timings
5. Aftermarket Orders and Muhurat Trading 
6. How can you invest in a stock market?

Stock Market Timings India

Trade in the stock market can only be undertaken during a specific time interval in India. 

Retail customers have to perform such transactions through a brokerage agency between 09.15 am to 03.30 pm on weekdays. Most investors undertake purchase or sale of securities listed on the major stock exchanges in India. 

1. Bombay Stock Exchange (BSE)
2. National Stock Exchange (NSE) 

Indian stock market timings are the same for both these major stock exchanges.

Trading on the equities segment takes place on all days of the week (except Saturdays and Sundays and holidays declared by the exchange in advance). Indian stock market timings of the equities three segment are:

Pre-open session

This session lasts from 09.00 AM  to 09.15 AM Orders to purchase or sell any securities can be placed during this time. It can be further classified into three sessions:

09.00 AM to 09.08 AM  During this stock market opening time in India

• Orders for any transaction can be placed. The order entry is given preference when actual trading begins, as these orders are cleared off in the beginning. 
• Any requests placed during this time can be changed or cancelled according to need, which is beneficial to investors, and no orders can be placed after this period of 8 minutes during the pre-opening session.

09.08 AM to 09.12 AM This segment of Indian share market timing is responsible for price determination of security

• Price matching order is done by corresponding demand and supply prices to ensure accurate transactions among investors who want to purchase or sell a security, respectively.  
• Determination of final prices at which trading will begin during normal Indian stock market timing is done through multilateral order matching system. Price matching order plays a vital role in determining.
• The price at which the security is transacted during a normal session of Indian stock market timing. However, benefits of modification of any order already placed in not available during this session.

09.12 AM to 09.15 AM  Regular trading session

• This time acts as a transition period between pre-opening and normal Indian share market timing. 
• No additional orders for transactions can be placed during this time. Also, existing bets already placed from 9.08 AM to 09.12 AM cannot be revoked as well.

Normal Session

• This is the primary Indian share market timing lasting from 09.15 AM to 03.30 PM Any transactions made during this time follows bilateral order matching system, wherein price determination is done through demand and supply forces.
• Bilateral order matching system is volatile, thereby inducing several market fluctuations which are ultimately reflected in security prices. To control this volatility, the multi-order system was formulated for the pre-opening session and was incorporated in Indian stock market timings.

Post-closing Session

• Stock market closing time in India is marked at 03.30 PM No exchange takes place after this period. 
• However, the determination of closing price is done during this time, which has a significant effect on the following day’s opening security price.

Stock market closing time in India can be divided into two sessions

03.30 PM to  03.40 PM

• The closing price is calculated using a weighted average of prices at securities trading from 03.00 PM to 03.30 PM in a stock exchange. 
• For determining the closing prices of benchmark and sector indices such as Nifty, Sensex, S&P Auto, etc. weighted average prices of listed securities are considered.

3.40 PM to  04.00 PM 

• This period is post stock market closing time when bids for the following day’s trade can be placed. Bids placed during this time are confirmed, provided adequate buyers and sellers are present in the market.
• These transactions are completed at a stipulated price, irrespective of changes in opening market price.
• Thus, capital gains can be realized if opening price exceeds closing price by an investor who has already placed their bids. In case closing price exceeds opening share price, bids can be cancelled during the narrow window of 09.00 AM to 09.08 AM.

Block Deal Session Timings

• Morning Window: This window shall operate between 08:45 AM to 09:00 AM.
• Afternoon Window: This window shall operate between 02:05 PM to 2:20 PM.

Aftermarket Orders: Post this time frame. No transactions can take place. However, investors can place aftermarket orders, for securities of chosen companies, which would be allocated at opening market price the following day.

Muhurat Trading: Will be conducted. Timings of ‘Muhurat’ Trading shall be notified subsequently.

Indian stock market is generally closed for any transactions on Diwali, as it is a religious festival celebrated all across the country. However, a one-hour trading session is conducted from 05.30 PM to 06.40 PM as it is considered to be auspicious.

How can you invest in a stock market?

• Stock market investments can only be undertaken through brokerage agencies for standard customers. 
• Orders for specific securities can be placed online, and a stockbroker having direct investment access can transact the request with a T+2 settlement buffer period.
• However, due to an overall volatile nature of stock markets, investments have to be made after careful analysis of companies listed in Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). 
• You can look for a good stock investing platform that provides you complete analysis of different companies as well as allow you to buy stocks with ease.
• Even though the Indian stock market timings are from 09.15 AM to 03.30 PM securities of selected companies can be ordered even aftermarket closure. Also, trading of Mutual Funds NAV is conducted after market closes for the day, wherein prices are determined through final value of shares in as per closing time.