14 May 2024 | By INDIE
The Indian stock market offers plenty of opportunities for traders and investors seeking to create wealth as the country’s economy grows. It operates under a robust framework regulated by the Securities and Exchange Board of India with diverse sectors for investors to build their investment portfolios. The National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) are the primary exchanges in the Indian stock market. They operate electronically and provide a platform for efficient trade. There are stock broking platforms as well that help you for easy trade by optimising your trading strategies with advanced charts and tools.
This article aims to give a comprehensive understanding of the stock market timing in India. It delves into the intricacies of various trading sessions and their influence on the market dynamics.
Indian share market timings are categorised into three main segments:
Segment |
Time |
Pre-open session |
9.00 am to 9.15 am |
Regular trading session |
9.15 am to 3.30 pm |
Closing session |
3.30 pm to 4.00 pm |
The trading day in the stock market begins with a pre-open session that starts at 9.00 am and lasts for 15 minutes. Pre-open session is further classified into the order collection period and order matching period. Here are the details of the same.
During this session, investors can place their buy/sell orders for stocks. Though actual trading does not begin during this period, investors can make order entries, modify them, or cancel them within this 8-minute window.
After completion of order collection, order matching, and price determination are done based on the principle of demand-supply mechanism. Orders are matched at an equilibrium price, which will be an open price. A specific sequence is followed to match each type of order. It is important to note that an order cannot be entered, modified, or cancelled during this session.
This period is a silent period that enables the transition from the pre-open session to the regular market session. No fresh order can be placed or revoked during this session.
The regular trading session commences immediately after the pre-open session at 9.15 am and continues until 3.30 pm. During this period, investors actively trade (buy and sell) financial instruments such as stocks, derivatives, bonds, and others listed on the stock exchanges. This active trading session follows a bilateral order matching system. That means the buy order is matched with the sell order placed for the same price and vice versa.
You can analyse real-time market data with the INDIE stock broking app along with simplifying your stock trading.
Also read: How to start trading in stock market?
The closing session commences immediately after the end of the regular trading session at 3.30 pm. The session lasts for 20 minutes, from 3.40 pm to 4.00 pm. Before this, the closing price is determined based on the weighted average of the prices during the closing hours (the last 30 minutes of the regular trading session). After the closing price is calculated, investors can place post-market orders to buy or sell securities at the closing price during the 20-minute closing session. The closing session allows investors to adjust their positions based on the latest developments that may have occurred after the market closed.
Also read: Navigating the stock market
In conclusion, understanding the stock market timing in India is crucial for price discovery, volatility management, and identifying the unique opportunities in the market. The stock market timing and its influence on the market behaviour helps you understand the complexities of the Indian stock market. You can enhance your trading or investment strategies accordingly to achieve your financial objectives.
