The Bombay Stock Exchange and the National Stock Exchange are two major Indian stock exchanges and are the 11th and the 12th largest stock exchanges in the world. The Bombay Stock Exchange is also the oldest stock exchange in Asia. Both these stock exchanges are located in Mumbai and have an identical trading mechanism, settlement process, trading hours, etc. So let’s have a look at the stock market timings in India.
Stock Market Timings in India
Both the stock exchanges operate from Monday to Friday and are closed on weekends, public and national holidays. Both; the Bombay Stock Exchange and the National Stock Exchange have normal trading hours for equity market which operate between 09:15 AM to 03:30 PM, for the MCX or the commodity market between 10:00 AM to 11:30 AM and for the NCDEX or the Argi-community market between 10:00 AM to 05:00 PM. Both stock exchanges operate continuously during their operating hours without any breaks such as a tea break or lunch break.
The operating hours of both these stock exchanges are divided into three different sections, i.e. the normal session, pre-opening session, and the post-closing session.
The pre-opening session of both the Bombay Stock Exchange and the National Stock Exchange takes place between 09:00 AM to 09:15 AM. The pre-opening session of both the stock exchanges is divided into three different sessions.
09:00 AM to 09:08 AM
This eight-minute session is known as the order entry session, wherein traders and investors can place orders to buy or sell stocks, or cancel their existing orders to buy or sell stocks.
09:08 AM to 09:12 AM
This 4-minute session is used to match and compute the opening prices for the normal session. Investors and traders cannot buy, sell or modify their orders during this period.
09:12 AM to 09:15 hours
This 3-minute session is used as a buffer period for transition from the pre-opening period to the normal trading session.
The opening price for the normal session is computed with the aid of the multilateral order matching system, which has replaced the bilateral matching system, which was used earlier. The bilateral matching system was replaced due to the volatility it caused at the time of the market opening.
However, the majority of the trading activity and transactions take place during the normal sessions. Hence there is a high amount of volatility during the normal session of trading.
Normal Trading Hours
The normal trading hours of both the stock exchanges are 09:15 AM to 03:30 PM and the majority of the trading takes place during these regular trading hours wherein investors can buy and sell stocks during the session.
A bilateral matching session follows the normal trading session, wherein when the buying price of the stock is equivalent to its selling price, the transaction is said to be complete. During the normal trading hours, the transaction takes place as per time and price priority.
A 10-min session follows the normal trading session from 03:30 PM to 03:40 PM which is used for computing the closing price of stock and market indexes of both the respective stock exchanges. The closing price is calculated from the weighted average price between 03:00 PM and 03:30 PM.
The post-closing session is a 20-minute session taking place between 03:40 PM to 04:00 PM. Investors and traders can place orders for buying and selling shares at the closing price, but the transaction will only be confirmed and completed only with the buyers or the sellers which are available during this period.
The Mahurat Session
The Mahurat session is a special trading session that takes place during Diwali. The time and date of the Mahurat session are not fixed and are decided every year a few days before Diwali. In general, the Mahurat Trading session takes place in the evenings for a period of 60-minutes.
It is important for investors and stock traders to understand the different operational timings of Indian stock market to enable them to better plan and organize their trading activities.
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