In India, trading in the stock market is restricted to a specified time period. On weekdays, between 9.15 a.m. and 3.30 p.m., retail clients must do such transactions through a brokerage firm. The majority of 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). Both of these main stock exchanges in India have the same stock market times.
The Indian stock market trading hours are separated into three categories:
From 9.00 a.m. to 9.15 a.m., there will be a session. During this period, you can make orders to buy or sell any securities. It is further divided into three sections:
- 9.00 – 9.08 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 first. Any requests made within this time can be altered or cancelled as needed, which is helpful to investors, and no orders can be put after this 8-minute pre-opening session period.
- 9.08 – 9.12 a.m.
The price of a securities is determined by this sector of the Indian stock market timing. To ensure proper transactions among investors who wish to buy or sell a securities, price matching is done by equating demand and supply prices. The multilateral order matching technique is used to determine the final prices at which trading will commence during normal Indian stock market timing. During a routine session of Indian stock market timing, the price matching order is crucial in setting the price at which the securities is transacted. However, during this session, the benefits of changing an existing order are not available.
- 9:12 a.m. – 9:15 a.m.
This interval serves as a transition between pre-opening and regular Indian stock market hours. During this period, no new transaction orders may be placed. Existing bets placed between 9.08 a.m. and 9.12 a.m. cannot also be cancelled.
- Normal Session
From 9.15 a.m. until 3.30 p.m., this is the key Indian stock market time. Any transactions performed during this time are subject to a bilateral order matching mechanism, in which prices are determined by demand and supply factors.
Because the bilateral order matching method is volatile, it causes a number of market changes, which are reflected in security prices. The multi-order method was developed for the pre-opening session and was included into Indian stock market timings to manage this instability.
- The Closing Session
3.30 p.m. is the Indian stock market’s closing hour. After this time, there will be no exchange. During this period, however, the closing price is determined, which has a substantial impact on the opening security price the next day.
It is further divided into 2 sessions.
- 3:30 – 3:40 p.m.
It is a Closing Price Calculation Session. A weighted average of prices at securities trading from 3 p.m. to 3.30 p.m. at a stock exchange is used to compute the closing price. The closing prices of benchmark and sector indexes such as the Nifty, Sensex, S&P Auto, and others are calculated using the weighted average prices of listed shares.
- 3:40 p.m.–4:00 p.m.
In the post-close session, you can place orders to purchase or sell stocks at the closing price. Your deal will be finalised at the closing price if buyers/sellers are available. It is solely applicable to the cash market. Futures and options trading do not have such sessions.
Diwali is a religious celebration observed all throughout India, hence the stock market is normally closed for any transactions on that day. However, because it is considered auspicious, a one-hour trading session is held from 5.30 p.m. to 6.40.