There are some basic things that you, as an investor or trader, should know before initiating to make investments in the Stock market of India. One of such basic thing is the timings of the Indian Stock market. Investing in stocks is a very captivating thing, and it all depends upon the main factor, time. There can be a sudden hike in prices of shares anytime, and similarly, the price can unexpectedly befall anytime. You should have consistent take note of the stocks to take the correct decision over your investments.
Stock Market Timings in India: Know About Trading Hours
As an investor or trader of stocks (or anybody who deals with stock trading), you should know all the details of the Indian Stock market timings. Before exploring deeper into the major details of the timings of the Stock Market of India, you should refresh your mind regarding the concept of the Stock Market or Stock Exchange.
The Stock Market
A Stock market, Stock exchange, or Share market is an aggregation or collection of markets and exchanges where buying and selling of securities, stocks, or shares of publicly-held companies take place. Or you can also say that it is the meeting place of sellers and buyers. It includes securities listed on the public stock exchange and privately traded stocks as well. The stock market is a significant part of the economy of a country. It is a secure and regulated environment where participants interact and from where companies can raise money by issuing and selling their shares or securities to the common public.
Stock Exchanges of India:
Please Note: The timings of both BSE and NSE are the same. You should know that the Stock exchange or the Stock market in India is open on weekdays only; that is, it remains closed on Saturday and Sunday. Stock Market also remains closed on all the national holidays of India. There is no lunch or tea break during the Stock market timings in India. We will explore further details regarding the Indian Stock Market timings with respect to the following:
Normal timings for Equity trading market – Open from 9:15 AM to 3:30 PM, Monday to Friday Trading timings for Commodity Market (MCX) – Open from 10:00 AM to 11:30 AM, Monday to Friday Trading timings for Agri-commodity (NCDEX) Market – Open from 10:00 AM to 5:00 PM, Monday to Friday
Also Read: 12 Best Stock Market Trading Apps In India
Timings of Stock Market of India
The overall timings of the Stock market of India are divided into three major sessions :
Normal session (also known as Continuous session) Pre-opening session Post-closing session
Now, let us gain further knowledge on all these sessions to know their prominence in the Indian stock market timings.
1) Pre – Opening time
The pre-opening session takes place in the morning and commencing from 9:00 AM up to 9:15 AM. All the orders for buying and selling of any securities are placed during this time. This time period can further be divided into three sessions: 1. 9:00 AM to 9:08 AM Session – The Opening time of the Stock Market in India is 9:00 AM. During this session, orders for all types of stock trading transactions can be made. The entry of the order is considered when the actual trading commences, as these orders are cleared in the starting itself. All the requests placed in between this time slot can be altered or canceled as per the need, which is an advantage to the investors. Moreover, no transactions can be placed in the pre-opening session after this particular time slot of 8 minutes. 2. 9:08 AM to 9:12 AM Session – This particular category of the pre-opening session of the Indian Stock Market is accountable for the price ascertainment of stocks or securities. Order prices are hereby matched to the relative demand and supply prices, in order to check the accuracy of transactions amongst the investors who demand to buy or sell a security. Ascertaining the final prices, upon which trading will commence in the normal trading time of the Indian Stock Market is done via multilateral system of order matching. This Price matching of orders plays a crucial role in ascertaining the price on which the transaction of security will take place in the normal session. Yet the advantage of alteration or cancellation of any already placed order is not available in this session. 3. 9:12 AM to 9:15 AM Session – This particular time session functions as a transition period between the pre-opening and the normal timings of the Indian Stock Market. Further orders for transactions cannot be placed between this session. Moreover, the previously placed bets also cannot be canceled in this session.
2) Normal Session
The Normal session is the chief Indian Stock Market timing, commencing from 9:15 AM to 3:30 PM. Every transaction made in between this session follows a bilateral system of order price matching, in which price is ascertained through the relative forces demand and supply. The bilateral system of order matching is volatile or unstable. Hence, it induces various market fluctuations, which in turn influences the prices of securities. For controlling this instability, the multi-order system was introduced for the pre-opening session and was assimilated into Indian stock market timings. The trading of stocks remains open even at lunch and tea-time. Also Read: Best & Worst Weekdays For Trading In Stocks
3) Post-Closing Session
The time of closure of the Stock market of India is 3:30 PM. After this period, no exchanges take place. However, during this session, the ascertainment of the closing price is done. This price ascertainment has a substantial influence on the opening security price of the following day. The post-closing time of Indian stock market can be further divided into two sessions:
- 3:30 PM to 3:40 PM session: The final closing price is evaluated using a weighted average of prices at securities trading in the stock exchange, in the time period from 3:00 PM to 3:30 PM. The weighted average prices of the listed securities are considered for ascertaining the closing prices of benchmark and sector indices, like Nifty, Sensex, S&P Auto, etc.
- 3:40 PM to 4:00 PM session: This sub-session of the post-closing session of the Indian stock market is that a particular time when bids for the trade of the following day can be placed. Bids placed during this sub-session are confirmed, if adequate buyers and sellers are present in the market. These transactions are executed at a prescribed price, disregarding changes in the opening market price.
- If the opening price of securities exceeds the closing price by an investor who has already placed his bids, capital gains can be realized in such a situation. In case, the closing price exceeds the opening price of securities, and the bids can be terminated in the narrow course of time, from 9:00 AM to 9:08 PM.
Aftermarket Orders
No transactions can take place after the entire time frame of the Indian Stock market specified above. Although, for securities of some specified companies, investors can place aftermarket orders, which would be assigned at opening market price on the following day.
Commodity (MCX) and Agri-commodity (NCDEX) Trading Timings
Anyone dealing with the stock market must know about trading timings of commodity and agri-commodity both. Commodity market trades in the primary economic sector apart from manufactured products. Agri-commodity market trades in agricultural commodities. MCX or the Commodity market opens from 10:00 AM till 11:30 AM. Whereas, the agri-commodity market opens from 10:00 AM till 5:00 PM. Both these markets are open from Monday to Friday. The market remains closed on Saturday – Sunday and all the public holidays.
MuhuratTradings
Usually, the Indian Stock Market remains closed for any transactions on public holidays, but on Diwali, the scenario is different. Even though it is a public holiday in India, it is famous for the gambling sessions that take place in the evening. Therefore, a one-hour trading session is organized from 5:30 PM to 6:40 PM, as such trading on that very day is regarded as auspicious or fortunate.
Invest in the stock market- How to do it?
You can invest in stock markets or stock exchanges through brokerage agencies for standard customers. You can also place online orders for specific securities of listed companies, and a stockbroker possessing direct investment access can make the requested transaction with a T+2 settlement buffer period. Moreover, investments have to be done after a careful and thorough analysis of companies listed in NSE and BSE due to the unstable or volatile nature of the Stock market. You can do this, finding a good stock investing platform that gives you a complete and detailed analysis of various companies, as well as provides you a platform for easy purchasing of securities. The stock market or Stock exchange of India is an important part of the Indian economy. It is a trading platform where securities or shares of listed companies are traded. An investor, trader, or any other dealer of the stock market or its related areas must have the know-how of timings of Stock exchange. By following the time frame discussed above and adhering to the guidelines of trading and investment, you can smoothly invest money in stocks and gain good returns.
