In India, trading in the stock market is only permitted during a certain period. On weekdays, retail consumers must do such transactions through a brokerage firm between 9.15 a.m. and 3.30 p.m. Most investors buy and sell securities listed on India’s two major stock exchanges, the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) (NSE). The times of the Indian stock market are the same for both of these main stock exchanges.
Indian stock market timings for trade is divided into three segments:
Timing of the Pre-Opening
This session will go from 9:00 a.m. to 9:15 a.m. During this period, orders to buy or sell any security can be placed. It is further subdivided into three sessions:
9:08 A.m. to 9:00 A.m.
Orders for any transaction can be placed at India’s stock market opening hour. When real trading occurs, the order entry takes precedence since these orders are cleared off first. Any requests made during this time can be amended or canceled as needed, which is advantageous to investors, and no orders can be put after these 8 minutes during the pre-opening session.
9:08 A.m. to 9:12 A.m.
This section of Indian share market timing is in charge of determining the price of securities. Price matching orders are created by correlating demand and supply prices to enable correct transactions among investors looking to buy or sell a security. The multilateral order matching mechanism is used to determine the final prices at which trading will commence during normal Indian stock market hours.
During a regular session of Indian stock market timing, the price matching order is critical in establishing the price at which the securities are transacted. However, the advantages of modifying an existing order are not available during this session.
9:12 A.m to 9:15 A.m.
This interval serves as a transition between pre-opening and typical Indian stock market timing. During this period, no new transaction orders may be placed. Existing bets placed between 9.08 a.m. and 9.12 a.m. cannot be canceled.
Normal Session
This is the major Indian stock market trading time, which runs from 9.15 a.m. to 3.30 p.m. Any transactions conducted during this time are subject to a bilateral order matching mechanism, in which price setting is based on demand and supply dynamics.
The bidirectional order matching method is unstable, causing multiple market swings that are eventually reflected in securities prices. To mitigate this volatility, the multi-order system for the pre-opening session was developed and used in Indian stock market timings.
Session Following the Closing
In India, the stock market closes at 3.30 p.m. After this time, no trade takes place. However, the closing price is determined during this time, which has a considerable impact on the opening security price the following day.
In India, the stock market closes in two sessions: 3.30 p.m. and 3:40 p.m.
The closing price is derived by taking a weighted average of prices at securities trading on a stock exchange between 3 p.m. and 3.30 p.m. Weighted average prices of listed stocks are used to calculate the closing prices of benchmark and sector indexes such as the Nifty, Sensex, S&P Auto, and so on.
3:40 p.m. – 4:00 p.m.
This is the hour after the stock market closes when bids for the next day’s trading can be placed. Bids submitted during this period are verified if there are enough buyers and sellers in the market. These transactions are executed at a predetermined price, regardless of fluctuations in the opening market price.
Thus, capital gains might be realized if an investor who has already made bids exceeds the starting price. If the closing share price exceeds the starting share price, bids might be revoked between 9.00 a.m. and 9.08 a.m.
Orders Placed Aftermarket
Please post this time window. There can be no transactions. Investors can, however, place aftermarket orders for stocks of selected businesses, which will be distributed at the opening market price the following day.
Trading in ‘Muhurat’
Diwali is a religious celebration observed throughout the country, thus the Indian stock market is typically closed for any transactions. However, a one-hour trading session is held from 5.30 p.m. to 6.40 p.m. since this time is considered auspicious.
What is the Best Way to Invest in the Stock Market?
Standard clients can only invest in the stock market through brokerage firms. Online orders for individual securities can be placed, and a stockbroker with direct investment access can fulfill the request with a T+2 settlement buffer period.
However, owing to the overall volatility of stock markets, investments must be undertaken after a thorough examination of businesses listed on the BSE/NSE. You can seek a reputable stock investing platform that offers a comprehensive analysis of various businesses as well as the ability to buy stocks with simplicity.
Even though the Indian stock market is open from 9.15 a.m. to 3.30 p.m., stocks of chosen firms can be ordered even after the market closes. Furthermore, trading of Mutual Funds NAV occurs after the market closes for the day, with prices set by the final value of shares as of the closing time.