Share market timing
Unlike some markets like the US and in Europe, Indian markets have a standardize time of operation throughout the year.
Exchange of shares takes place only during specific intervals during the week.
Share market timing are as follows:
9:15 am-3:30 pm on weekdays are the timings during which the BSE and NSE function.
Muhurat Trading: normally the stock exchange is closed for the festival of Diwali but it functions for one hour between 5:30 pm-6:40 pm as it is considered auspicious.
Indian Share market timings for 2021
The daily Share market timing are further divided into three segments:
This time extends between 9:00 am to 9:15 am and any orders to buy or sell securities can be placed during this. It is further divided into three sessions:
9:00-9:08 am: during this period entry orders can be given and are cleared off on a preferential basis, orders can be adjusted or canceled as well.
9:08-9:12 am: As we know that the price of each security is determined by the cumulative effect of the demand and supply forces, during these 4 minutes the price at which the security is to be traded is determined by the orders placed in the first 8 mins.
This will set the opening price of the security. However, modification of the orders already placed by the investors is not allowed during this period. Determination of the final price of the security is done through a multilateral order matching system.
9:12-9:15 am: this is the buffering period for the stock market before it starts, no orders can be placed or revoked during this period.
This is the period during which the exchange actually functions. Shares are bought and sold among individuals during this period. Share market timing for every day starts at 9:15 am and extends till 3:30 pm. The shares are traded through a bilateral order matching system which fluctuates the price of the securities as per the demand and supply forces being experienced at that point in time.
One of the implications of using this system is that there is a certain level of volatility that exists in the market and in order to curb its influence a multilateral system of order matching was introduced in the pre-opening time for the Indian stock market.
Post-closing session: The trading at the stock market halts at 3:30 pm. No exchange of shares can take place after this time. This session lasts from 3:30 pm-4:00 pm is dedicated to determining the closing price of the securities which have a significant impact on the next day’s opening. It is further bifurcated into two sessions.
3:30 pm-3:40 pm: the closing price of the security is determined during these 10 mins. A system of the weighted average of the securities traded between 3 to 3:30 is used to calculate the closing price. Indices such as Nifty, Sensex S&P are used to close benchmark and sector prices.
3:40 pm-4:00 pm: this is the period during which bids can be placed for the following day. The orders are confirmed provided there are adequate buyers and sellers and are placed at the stipulated price. The execution of such bids is made at the price set, irrespective of the next day’s opening price.
This also enables the investors to recognise capital gains if the opening price exceeds the closing price, if it’s the opposite, the investor may adjust the bid in the pre-opening session.
After this time, no orders can be placed, and the stock market stops functioning for the day. Knowing Share market timing of both the exchanges, especially the extended sessions is important for market participants.