In Indian stock market trading is restricted to a certain window of time. On weekdays from 9.15 a.m. to 3.30 p.m., retail clients must conduct these transactions through a brokerage firm. The majority of investors buy and sell securities listed on the two largest stock exchanges in India, the Bombay Stock Exchange, and the National Stock Exchange. Both of these significant stock exchanges in India have the same trading hours.
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Timings for trade on the Indian stock market are divided into three categories:
This meeting lasts from 9.00 to 9.15 in the morning. During this period, you can make orders to buy or sell any securities. It may be further divided into the following three sessions
Orders for any transaction can be put at the start of the Indian stock market. When trading starts, the order entry is prioritized since these orders are wiped off first. Investors benefit from this flexibility since orders placed before this 8-minute window may be modified or canceled as needed. No orders may be placed during the pre-opening session after this time. This section of the Indian stock market system is in charge of setting the price of securities.
To ensure precise transactions between investors looking to buy or sell an asset, respectively, a price-matching order is carried out by correlating demand and supply prices. Through the use of a multilateral order matching mechanism, the final prices at which trading will start during regular trading hours in India are determined. The price at which the securities are traded during a typical session of the Indian stock market is heavily influenced by price-matching orders.
The benefits of changing an existing order are not, however, accessible at this time. This interval serves as a transition between preopening and regular Indian share market hours. Orders for subsequent transactions cannot be placed at this time. Furthermore, bets that have already been placed between 9.08 and 9.12 a.m. cannot be canceled. The basic Indian stock market hours are from 9.15 am to 3.30 pm.
Any transactions during this period will use a bilateral order matching mechanism, in which supply and demand factors are used to determine prices. The unstable nature of the bilateral order matching method leads to several market swings, which are eventually reflected in the pricing of securities.
The pre-opening session multi-order method was developed to reduce this volatility, and it was implemented into the Indian stock market schedules. In India, the stock market closes at 3.30 p.m. After this time, no more transactions are made. But during this period, the closing price is decided, and this has a big impact on the opening security price the next day.
The closing time of the Indian stock market can be divided into two sessions
A weighted average of prices for securities trading on a stock exchange from 3 p.m. to 3.30 p.m. is used to determine the closing price.
Consideration is given to the weighted average prices of listed stocks for calculating the closing prices of benchmark and sector indexes like Nifty, Sensex, S&P Auto, etc. After the stock market closes, bids for the transaction the following day can be put at this time. As long as there are enough buyers and sellers in the market, bids submitted during this period are accepted.
No matter how the opening market price fluctuates, these transactions are executed at the agreed-upon price. As a result, an investor who has already made a bid may realize capital gains if the opening price is higher than the closing price. Bids may be canceled during the brief period between 9.00 a.m. to 9.08 a.m. if the closing price is higher than the starting share price.
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