In India, stock market trading has a certain window of time. The trading hours in a day are fixed for the stock market. Retail customers should make these purchases through a brokerage firm on weekdays from 9.15 a.m. to 3.30 p.m.
Indian stock market’s trading hours have three segments:
- Pre-opening timing
The time of this session is 9:00 a.m. to 9.15 a.m. It has three sessions further:
- 9:00 AM- 9:08 AM
One can order any transaction during this time of day when India’s stock market opens. When the Indian stock market opens at this time of day, any transaction can be done. However, when trading starts, the priority is order entry because these orders are the first ones the clear out. Any requests made during this period may be modified or cancelled as necessary. After this window of 8 minutes in the pre-opening session, no orders may be placed.
- 9:08 AM- 9:12 AM
This part of the Indian stock market timetable sets the price of securities. Demand and supply prices are matched to ensure accurate transactions between investors wishing to purchase or sell assets. During the regular trading hours of the Indian stock market, the final prices at which trading will begin are determined using the multilateral order matching process.
- 9:12 AM- 9:15 AM
Pre-opening and regular Indian share market hours are transitioned during this time. During this time, no more transaction orders may be made. Additionally, bets that have already been placed between 9.08 and 9.12 a.m. cannot be cancelled.
- Normal Session
The main trading hours for the Indian stock market are from 9.15 am to 3.30 pm. Bilateral order matching governs all transactions during this time. Supply and demand forces come into play to determine prices.
Due to the volatility of the bilateral order matching method, numerous market swings ultimately affect securities prices. The multi-order system is for the pre-opening session. Exchange Boards implement this in Indian stock market timings to reduce this instability.
- Post-closing session
In India, the stock market closes at 3.30 p.m. Transaction close after this time.
- 3.30 p.m.-3.40 p.m.
The exchange decides the closing price during this time. Board takes the ‘Weighted Average’ of prices for securities from 3 p.m. to 3.30 p.m. and determines the closing price. The calculation of the closing price of benchmark and sector indexes like Nifty, Sensex, S&P Auto, etc., considers “Weighted Average Price”.
- 3.40 p.m. – 4 p.m.
Bids for the next day’s transaction might be placed at this time after the stock market closes. If sufficient buyers and sellers are present in the market during this time, the exchange boards confirm the bids of this period. Regardless of fluctuations in the opening market price, execution of these transactions takes place.
Most investors buy and sell assets listed on the BSE and NSE, India’s two largest stock exchanges. These significant stock exchanges’ Indian stock market timings are the same.
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