The Indian stock market is one of the world's most dynamic and rapidly growing financial markets. With the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) serving as the leading stock exchanges of India, the market attracts millions of investors and traders every day. However, before delving into the complexities of stock trading, it's crucial to understand the trading hours and sessions of the Indian stock market.
The stock market remains closed on weekends and holidays, and during the weekdays, it follows a specific set of timings, divided into three sessions:
The pre-opening session lasts for 15 minutes. During this session, traders place buy and sell orders for the securities listed on BSE and NSE.
Institutional investors and high-net worth individuals usually trade in this session. However, retail investors can also opt for pre-market trading if their broker offers it. This session can be further classified into three sub-sessions.
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Session Two – Normal Session (09:15 a.m. – 03:30 p.m.)
The normal trading session, which starts at 09:15 a.m. and ends at 03:30 p.m., is a continuous trading period where traders can place orders for buying and selling securities, and also modify/cancel them as per their needs. During this period, the Indian Stock Market follows a bilateral order matching system, which pairs every buy order with a corresponding sell order and vice versa. Likewise, the prices of securities are subject to frequent fluctuations, making this session highly volatile.
Session Three – Post-Closing Session (03:30 p.m. – 04:00 p.m.)
When the normal trading session comes to an end at 03:30 p.m., the post-closing session begins and lasts until 04:00 p.m. It can be divided into two sub-sessions:
After the regular trading hours come to a close at 4:00 p.m., traders can place orders for the next trading day, known as after-market orders. However, these orders are limited to certain companies and are executed at the opening price of securities for the following day.
Until mid-1999, retail investors were not allowed to trade after hours, but the present scenario is such that both institutional investors and retail investors can trade after hours.
Timing is crucial for traders and investors to make informed decisions and gain profits in the stock market, particularly for intraday trading. Therefore, it's essential to stay updated with the stock market timings. If you're new to stock trading and want to begin your journey, contact Motilal Oswal today.