All You Need To Know About Stock Market Timings & Trading Sessions In India

Sensex rises 500 points, Nifty settles around 16,000 mark, Market remains unsettled during trading hours, opens on a high note or closes with a bloodbath, many of you must have heard such statements in the financial news channels, portals and read in pink papers almost every day.

But have you ever wondered why such news, especially in news channels and online financial portals, comes around a particular time? It is because of the stock market timings and working days. That is what forms the basis of these statements.

Curious to know about it?

Let¡¯s deep dive and understand the entire concept of stock market timings and trading sessions for retail investors and traders in India.

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Also Read: From Stock Brokers To Merchant Bankers-Understanding The Intermediaries Involved In Stock Market

Stock Market Timings & Trading Sessions

Trading and investing in the stock market can only be undertaken during the various sessions involved in stock market timings. As a retail investor, you have to perform such transactions through a brokerage agency broadly between 9.15 a.m. to 3.30 p.m. on weekdays, i.e. Monday to Friday, excluding the public holidays as stated by stock market indices BSE and NSE. Indian stock market timings are the same for both these major stock exchanges.

Simply put, Indian stock market timings for trading are divided into 3 segments:

1. Pre-Opening Timing

This session¡¯s duration is from 9.00 a.m. to 9.15 a.m. Orders to purchase or sell any securities can be placed during this time. This session can be further classified into three sub-sessions:

Order Entry Period: 9:00 am-9:08 am

During this sub-session of the pre-opening time of the Indian stock market, orders for any transaction can be placed. The order entry is given preference when actual trading begins, as these orders are usually cleared off in the beginning. Any requests placed during this time can be changed or cancelled on a need basis, which turns out to be beneficial to investors. But remember that no orders can be placed after this period of 8 minutes during the pre-opening session. As per the BSE website, this session can be randomly ended at 9:07 am as well.

Order Matching & Confirmation Period: 9:08 am-9:12am

This sub-session is primarily responsible for the price determination of the securities. Price matching for orders is done by corresponding demand and supply prices to ensure accurate transactions among investors who want to purchase or sell a security, respectively. Keep in mind that the determination of final prices at which trading will begin during normal Indian stock market timing is done through a multilateral order matching system.

However, the benefits of modification of any order already placed are not available during this session.

Buffer Period: 9:12-9:15 am

The last sub-session acts as a transition period between the pre-opening and normal Indian share market timing. No additional orders for transactions can be placed during this time. Also, existing bets already placed between 9:08 am-9:12 am also cannot be revoked.

Also Read: How To Manage And Minimise Stock Market Risks

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Also Read: How Is Investing In Stocks Different From Mutual Funds?

2. Normal Session/Continuous Trading Session

This is the primary Indian share market timing that lasts from 9.15 a.m. to 3.30 p.m. Any transactions made during this time follow the bilateral order matching system, wherein price determination is done through demand and supply forces.

As the bilateral order matching system is volatile, several market fluctuations are induced, which are ultimately reflected in volatile security prices. So, to control this volatility, the multi-order system was formulated in the Indian stock market timings.

3. Post-Closing Session

Stock market closing time in India is marked at 3.30 p.m. No exchange takes place after this period. However, the determination of closing price is done during this time, which has a significant effect on the following day's opening security price as well.

Further, stock market closing time in India can be divided into two sessions -

3.30 p.m.-3.40 p.m.

In this post-closure sub-session, the closing price of securities is calculated using a weighted average of prices at securities trading from 3 p.m. -3:30 p.m. in a stock exchange, like BSE and NSE. For the uninitiated, weighted average prices of listed securities are considered for determining the closing prices of benchmark and sector indices such as Nifty, Sensex, S&P Auto, etc.

3.40 p.m. - 4 p.m.

During this period, bids for the following day's trade can be placed. Bids placed during this time are confirmed, provided adequate buyers and sellers are present in the market for it. These transactions are completed at a stipulated price, irrespective of changes in the opening market price.

Hence, capital gains can be realized if the opening price exceeds the closing price by an investor who has already placed their bids. Whereas in case the closing price exceeds the opening share price, bids can be cancelled by investors during the narrow window of 9.00 a.m. - 9.08 a.m the next day.

Also, as per NSE & BSE websites, there are block deal session timings as well for equities, in which execution of certain large trades are facilitated through this separate trading window.

Morning Window: This window shall operate between 08:45 AM to 09:00 AM.

Afternoon Window: This window shall operate between 02:05 PM to 2:20 PM.

Also Read: Decoded: 20 Basic Stock Market Terms You Must Know Before You Get Started

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