Stock Market Timings: The Hours of Gain

“Do not disturb a trader during market hours” Once you become a trader, you realize the truth this line holds. You must have witnessed how traders are gripped to the screen during market hours. This is because they have limited time to execute their trades or make moves and this limited timing is called Stock Market timings. Like any other market, the stock market is not open at every hour. It opens and closes at a specific time on specific days. Whereas, the market remains closed on every government holiday and festival.

Stock Market Timings in India

Luckily, stock market timings are the same throughout India. This implies that one can trade or invest at a particular time by sitting anywhere around India. The regular stock market timings in India are 9:15 am to 3:30 pm, Monday to Friday. This time is known as trading time. All the transactions of investors take place during these hours.

Pre-Opening Time:

The pre-opening time of the stock market in India is from 9:00 am to 9:15 am. It serves a valuable purpose for traders or investors. Between 9:00 am to 9:08 am, people get an overview of how the market is going to open. In the meantime, investors or traders can place market orders or limit orders.  

The transactions done during the pre-opening help in determining the ideal opening price. Any transactions done at this time are approved on priority on the market opening at 9:15 am.

Normal time or Trading time:

The trading time in India is 9:15 am to 3:30 pm. Traders or investors execute their trades during this time. This time is also referred to as market hours. During this time, the price of stocks is determined by the demand and supply force created by the buyers and sellers of the stock.

Post-Closing Time:

The market closes at 3:30 pm. But after the closing, the post-closing time starts from 3.30 pm to 4:00 pm. No orders can be placed during the post-closing time. But, the determination of the closing price of stocks is done at this time.

With the help of the weighted average of stocks traded between 3:00 pm to 3:30 pm, the closing price of stock prices is calculated. The weighted average here refers to volume of buying and selling that occurred during the time slot.

After Market Orders:

After-market orders are to place orders for the following or the next day. Aftermarket hours are from 4:30 pm to 8:50 am. During this time, people can place their orders and these orders are approved after the trading session commences the next day. 

Many people who miss an opportunity to track the market during trading hours take advantage of after-market hours. As it helps them in placing orders that can further be approved the next day.

Muhurat Trading:

The Indian stock market is not functional on national holidays and festivals. But, on the auspicious occasion of Diwali in India, the stock market opens during a particular time slot. This time slot is referred to as muhurat trading. 

Muhurat Trading is observed for ages in India on the occasion of Diwali (Deepawali). As Diwali marks the beginning of the Hindu New Year, people find Muhurat trading lucky. 

India is a culturally-rooted country, and people believe that placing orders on the Diwali muhurat can bring prosperity to their life. 

Unlike stock market timings, Muhurat trading timing changes every year accordingly. The muhurat timing is decided by the stock exchanges every year and is conveyed to the people on the day of Diwali.

Stock Market Timings: Clearing and Settlement Process

Online Demat Accounts have made it easier to buy and sell stocks during market hours. But, the stock market timings are not only confined to market hours, but it also includes the clearing and settlement process. Previously the settlement cycle comprised T+2 days. But, from January 2023, according to SEBI regulations, the cycle has been shortened to T+1 days. This cycle is for all equities, F&O, and remaining stocks.

T day:

T day is also known as Trade Day. It is the day when you usually buy or sell the stock. A contract note from the broker is given to you on behalf of your order. On T day, the money is paid out from the funds of your demat account, and shares are credited to the broker’s account. In the case of selling stocks, the stocks are debited from your DEMAT account, and funds are transferred to your demat account. But these funds cannot be withdrawn from DEMAT account on the T-day. 

T+1 day:

As per the regulations of SEBI regarding the stock market timings and settlement, the order amount and broker’s fees are transferred to the stock exchange on T+1 days. Further, the shares are credited to your DEMAT account by the broker on this day. Vice-Versa happens when you sell a share.

This implies that if you purchased the stock on Tuesday, it will be credited to your account on Wednesday. On the contrary, if you sold stock on Tuesday, it is debited from your account on Wednesday.

Commodities Trading Timing

People in India are fond trading in commodities like gold, silver, crude oil, and more. Like stocks, commodities can also be traded in the market. Trade orders of commodities are managed by commodities exchanges: 

1. The Multi Commodity Exchange 
2. The Indian Commodity Exchange 
3. The National Commodities and Derivatives Exchange

Like stock market timings, commodities markets also work on specific timing. The time schedule of the commodities market can be divided into 3 parts:

1. Special Session:

The special session of the commodities market is from 8:45 am to 8:59 am. In these sessions, traders or investors can cancel their pending orders if they want, prior to the market opening.

2. Normal Session:

1. The normal session in the commodities market has different timings than the stock market timings. It opens at 9:00 am and closes at 11:30 pm. Further, the normal session is divided into two sessions:

• The first session, also known as the morning session, starts at 9:00 am and lasts till 5:00 pm. 
• The second session also known as the evening session starts at 5:00 pm and ends at 11:30 pm.

NOTE:-

The trade timings of the commodities market are revised twice a year by the commodities exchange. In the winter season of India, the closing time gets extended to 11:55 pm. This is done to match the daylight saving (spring season) in the USA. Whereas, the timings get back to normal in the summer season. 

The core difference between both sessions is that futures trading in agricultural commodities can be done till 5:00 pm. Whereas, other commodities can be traded till the end of the evening session.

3. Post-Market Session:

The post-market session is from 11:30 pm to 11:55 pm. During the post-market hours, traders can place orders for the next day. But, these orders are executed the following day when the market opens.

Summary

Stock market timings in India are similar throughout the year except on Diwali. The market opens Monday to Friday at 9:15 am and closes at 3:30 pm. Whereas, there are various other factors that are worth noting while studying stock market timings. Traders usually take advantage of the pre-opening time of the market. They place their orders prior to opening, so their orders can be executed on priority when the market opens. 

Further, the commodities market operates longer than the stock market timings. It opens at 9:00 am and closes at 11:30 pm.

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