As for India, the Market opens at 9:00 AM in the morning. From 9:00 Am to 9:15 AM there will be a Pre-Open Session.
Trading on the Indian equities segment takes place all weekdays. There are No trading on Saturday, Sunday, and Published Indian Stock Market Holidays declared by the Indian Stock Exchange in advance. The Market Opens at 09:15 hours and Closes at 15:30 hours. Pre-open trade session will be from 09:00 to 09:15 hours
Pre-open trade session is a 15-minute trade session from 9:00 AM to 9:15 AM on the 50 stocks of the NIFTY index. Only 50 stocks of the NIFTY index can be traded during this time on both NSE and BSE. Normal trading for all other stocks will start at 9:15 AM till 3:30 PM.
WHY PRE-MARKET SESSION?
In case a major event or announcement comes overnight before the market opens, such events are likely to bring heavy volatility on the next day when the market opens. Special events include merger and acquisition announcements, open offers, delistings, debt-restructurings, credit-rating downgrades, etc which may have a deep impact on investors' wealth. In order to stabilize this, a pre-open call auction is conducted to discover the right price and to reduce volatility.
BREAK-UP OF 15 MINUTES
The 15 minutes of the pre-open session is broken into 8 + 4 + 3.
The first 8 minutes: During this session, investors can place/ modify /cancel orders on the basis of which the exchanges would determine the rates at which trading would happen. Orders are not accepted after this initial 8 minutes.
Limit orders will get priority over market orders at the time of execution of trades. All orders shall be disclosed in full quantity, i.e. orders where the revealed quantity function is enabled, will not be allowed during the pre-open session. In the next four minutes, orders are matched, executable price is discovered and trades are confirmed. The next 3 minutes is just a buffer period for transmission from pre-market session to normal market session.
PRICE DISCOVERY
The equilibrium price shall be the price at which the maximum volume is executable. That is the price at which there are a maximum number of buy orders and sell orders. In case of more than one price meets the said criteria, the equilibrium price shall be the price at which there is minimum order imbalance quantity (unmatched quantity). Further, in case more than one price has the same minimum order imbalance quantity, the equilibrium price shall be the price closest to the previous day’s closing price. In case the previous day’s closing price is the mid-value of a pair of prices that are closest to it, then the previous day’s closing price itself shall be taken as the equilibrium price. In case of corporate action, the previous day’s closing price shall be the adjustable closing price or the base price.
If the price is not discovered in the pre-open session then the orders entered in the pre-open session will be shifted to the order book of the normal market following time priority. The price of the first trade in the normal market shall be the opening price.
The price band of 20% shall be applicable on the securities during the pre-open session.
REGIONAL STOCK MARKETS
Apart from the BSE and NSE, there are 21 regional exchanges that open at normal hours 9:15 to 15:30 hrs.
WORLD MARKET TIMINGS
Apart from this, global trends in stocks also affect the Indian market when it opens. Here’s a list of the opening time of stock markets around the world.
World Stock market timings according to Indian time:
Shanghai stock exchange – Opens at 7.30 Am
Hong Kong stock exchange - Opens at 7.55 Am
Tokyo stock exchange - Opens at 5.50 Am
South Korea – Opens at 5.50 Am
NYSE, New York – Opens at 8.30 Pm
NASDAQ – Opens at 8.30 Pm
BOVESPA, Brazil – Opens at 7 Pm
Bogota, Columbia – Opens at 7 Pm
Dow Jones – Opens at 7.30 Pm
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