Stock Market timings.
INDIAN MARKETS
Trading on the Indian equities segment takes place on all weekdays.
There is No trading on Saturday, Sunday and Published Indian Stock Market Holidays declared by the Indian Stock Exchange in advance.
- The Market Opens at: 09:15 hours and Closes at: 15:30 hours
- Pre open trade session will be from 09:00 ~ 09:15 hours
Pre-open trade session is a 15 minute trade session from 9:00AM to 9:15AM on the 50 stocks of NIFTY index .
Only 50 stocks of the NIFTY index can be traded during this time on both NSE and BSE. Normal trading for all other stocks will start at 9:15AM till 3:30PM.
WHY PRE MARKET SESSION?
In case a major event or announcement comes overnight before market opens, such events are likely to bring heavy volatility on the next day when the market opens. Special events include merger and acquisition announcements, open offers, delistings, debt-restructurings, credit-rating downgrades etc which may have a deep impact on investors wealth. In order to stabilize this, pre open call auction is conducted to discover the right price and to reduce volatility.
In case a major event or announcement comes overnight before market opens, such events are likely to bring heavy volatility on the next day when the market opens. Special events include merger and acquisition announcements, open offers, delistings, debt-restructurings, credit-rating downgrades etc which may have a deep impact on investors wealth. In order to stabilize this, pre open call auction is conducted to discover the right price and to reduce volatility.
BREAK-UP OF 15 MINUTES
The 15 minutes of pre open session is broken into 8 + 4 + 3.
The first 8 minutes: During this session investors can place/ modify /cancel orders on the basis of which the exchanges would determine the rates at which trading would happen. Orders are not accepted after this initial 8 minutes.
Limit orders will get priority over market orders at the time of execution of trades .All orders shall be disclosed in full quantity, i.e. orders where revealed quantity function is enabled, will not be allowed during the pre-open session
In the next four minutes, orders are matched, executable price is discovered and trades are confirmed. The next 3 minutes is just a buffer period for transmission from pre-market session to normal market session.
PRICE DISCOVERY
The equilibrium price shall be the price at which the maximum volume is executable. That is, the price at which there are maximum number of buy orders and sell orders.
In case of more than one price meets the said criteria, the equilibrium price shall be the price at which there is minimum order imbalance quantity (unmatched qty).
Further, in case more than one price has same minimum order imbalance quantity, the equilibrium price shall be the price closest to previous day’s closing price. In case the previous day’s closing price is the mid-value of a pair of prices which are closest to it, then the previous day’s closing price itself shall be taken as the equilibrium price. In case of corporate action, previous day’s closing price shall be the adjustable closing price or the base price.
- If the price is not discovered in pre-open session then the orders entered in the pre-open session will be shifted to the order book of the normal market following time priority. The price of the first trade in the normal market shall be the opening price.
- Price band of 20% shall be applicable on the securities during pre-open session.
- In case the index breaches the prescribed threshold limit upon the closure of pre-open session, the procedure as prescribed in SEBI Circular Ref. No.SMDRPD/Policy/Cir-37 /2001 dated June 28, 2001 shall be applicable from the time continuous normal market opens.
- what the circular says is about circuit limits. In case of 20% movement in the index, trading will be halted for reminder of the day.
There is also a 15 minute video on this topic by Dr. Sayee Srinivasan , Head Product Strategy, at BSE. Watch it here.
REGIONAL STOCK MARKETS
Apart from the BSE and NSE, there are 21 regional exchanges which open at normal hours 9:15 to 15:30 hrs.
WORLD MARKET TIMINGS
Apart from this, global trends in stocks also affect the Indian market when it opens. Here’s a list of opening time of stock markets around the world.
WORLD STOCK MARKET TIME ACCORDING TO IST.
- Shanghai stock exchange – Opens at 7.30 Am
- Hong Kong stock exchange - Opens at 7.55 Am
- Tokyo stock exchange - Opens at 5.50 Am
- South Korea – Opens at 5.50 Am
- NYSE, New York – Opens at 8.30 Pm
- NASDAQ – Opens at 8.30 Pm
- BOVESPA , Brazil – Opens at 7 Pm
- Bogota, Columbia – Opens at 7 Pm
- Dow Jones – Opens at 7.30 Pm
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