An overview of stock market timings: Opening and closing hours
First and foremost, you should be aware that Indian stock markets operate Monday through Friday and are closed on weekends. Besides, markets are closed for national holidays like Republic Day, Independence Day, Gandhi Jayanti, etc. It is important for traders and investors to know the stock market timings.
The Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) are the two main stock markets in India (NSE). Stock markets in India are open for business during certain hours each day. From 9:15 a.m. to 3:30 p.m., Monday through Friday, investors can make transactions.
On the MCX and NCDEX exchanges, the trading hours for the commodities (non-agricultural) market (gold, silver, crude, etc.) are from 10:00 a.m. to 11:30 p.m., Monday through Friday. The typical trading time for commodities (agri) markets such as Cotton, CPO, SYOREF, and other similar markets is from 10:00 a.m. to 5:00 p.m., Monday through Friday.
During business hours, investors and traders engage in continuous trading activity. Unlike banks and other organizations, Indian stock markets do not break for lunch or tea.
Broadly, Indian stock market timing is divided into three trading sessions:
- Pre-opening session
- Trading session
- Closing session
Let’s understand what transpires during each of these sessions.
The pre-opening session of the market is open from 9:00 a.m. to 9:15 a.m. on weekdays, or before the normal trading session begins. There are three smaller sessions within this window.
The window for placing orders opens at nine in the morning and closes nine minutes after nine. Throughout this period, buy and sell orders for stock are both accessible. During this time, customers also have the opportunity to modify their purchases or even cancel them entirely.
Order matching and the determination of the usual session beginning price take place during this time, which is between 9:08 and 9:12 a.m. During this time, you will not be able to make any modifications to the purchase or sale, nor can you cancel it.
9:12 a.m. to 9:15 a.m. serves as a buffer.
It ensures that the transition from the opening session to the regular session itself goes off without a hitch.
In the normal session, the starting price of the market is established by the use of multilateral order matching. When a bilateral matching system was in use in the past, market openings were characterized by significant levels of volatility. By moving to an order-matching system that is multilateral, the market volatility was reduced.
Normal trading session
The main session of the Indian stock market runs from 9:15 in the morning till 3:30 in the afternoon. Any transactions that take place during this period are subject to a system of bilateral order matching, in which the interaction of forces of supply and demand determines pricing.
When the buy and sale prices are the same, the transaction is considered to have been completed, and the trading session may proceed as normal. In this market, the order of priority for sales is determined by both the cost and the urgency of the situation.
The instability of the bilateral order-matching mechanism leads to market fluctuations. The fluctuations are eventually reflected in the values of various securities. The multi-order system was developed for the pre-opening session of the Indian stock market and integrated into the stock market timings to reduce the impact of this volatility.
Prices are averaged from 3:30 p.m. to 3:40 p.m.
Stock prices at market close are calculated as the simple average of prices from 3:00 p.m. to 3:30 p.m. The closing price of an index, such as the Sensex or the Nifty, is calculated by averaging the prices of its component stocks during the 30 minutes, from 3:00 p.m. to 3:30 p.m.
The end of trading on the Indian stock market occurs at 3.30 p.m. IST. After this time, there is no further trading. The closing price is decided at this hour, which has a considerable impact on the starting price of the securities the following day.
Day traders who operate in the Indian stock market need to be aware of the timings. You need to know about the market holidays as well. You will be well on your way to being a successful stock market investor if you open a demat account and then open a trading account once you have understood when it is appropriate to make trades.
Can I buy shares after 3.30 pm?
In India, regular trading hours for the stock market are typically from 9:15 am to 3:30 pm on weekdays. After this time, you can’t buy or sell shares on the regular stock exchange. However, some exchanges offer extended trading sessions with limited options. It’s essential to verify the specific trading hours and options available for your investment needs.
Can I buy share at 9 am?
No, you can buy shares on the stock market at 9:15 am when trading typically begins for the day in India.
Can we buy stock after 4pm?
No, you generally cannot buy or sell stocks on the regular stock market after the official trading hours, which typically end at 3:30 pm in India.
Can I buy shares on Sunday?
No, the stock market in India is typically closed on Sundays. The trading week usually begins on Monday and ends on Friday. It’s important to be aware of the market holidays and trading hours to plan your investment activities effectively.