Should the Indian Stock Market Timing be Extended to 5 PM?
The Indian stock market timing is currently set at 3:30 pm, but there is talk of extending it to 5 pm. The move is being considered for a variety of reasons. One of the primary reasons is to align India’s market timings with that of other major global markets, which will enable traders to calculate all their losses at once. Another reason is to increase liquidity and trading volumes. Longer trading hours provide more opportunities to transact, which can lead to more trading volumes. Additionally, the longer time frame can also help traders manage overnight market risk more effectively, which can attract more market participants eventually.
However, it is important to note that the volume in the market is concentrated towards the first and last hour. Despite the extension of trading hours by an hour in 2010, there has been a negligible effect on volume growth in the markets. Furthermore, India has lost a chunk of its trading volume to Singapore and Dubai due to taxes and risk hedging, and not due to trading hours.
The extension of trading hours can also help in hedging the risk in domestic markets, but it may not be beneficial for active retail F&O traders in the long term. Tracking P&L for long hours can be stressful and may affect their mental health. Additionally, active traders do not make money primarily due to overtrading, and longer hours may accentuate this problem.
While the move could boost revenues for the capital markets business in the short term, it may lead to lower participation and liquidity in the long run, which will affect everyone. Therefore, it is important to consider all the factors before extending the trading hours.
Below are the Stock Market Timings All over the World
- United States: The two major US stock exchanges (NYSE and NASDAQ) are open.From Monday through Friday, 9:30 a.m. to 4:00 p.m. Eastern Time
- Canada: the Toronto Stock Exchange is open from 9:30 a.m. to 4:00 p.m., similar to Eastern Time.
- China’s Shanghai Stock Exchange is open from 9:00 a.m. to 3:00 p.m. local time. For lunch, it closes between 11:30 a.m. and 1:00 p.m.
- The Hong Kong Stock Exchange is located in Hong Kong and is open from 9:00 am to 4:00 pm. It is closed from 12:00 am to 1:00 pm for lunch.
- Japan: The Tokyo Stock Exchange is open from 9:00 am to 3:00 pm local time, however, it is closed from 11:30 pm to 12:30 pm for lunch.
- India: The Bombay Stock Exchange opens from 9:15 a.m. to 3:30 p.m. local time.
- Europe: The London Stock Exchange opens in the United Kingdom from 8:00 a.m. to 4:30 p.m. local time (GMT).
- Germany: The Frankfurt Stock Exchange is open from 8:00 a.m. to 8:00 p.m.
- France: The hours of operation for Euronext Paris are 9:00 a.m. and 5:30 p.m.
- Switzerland: Local time for the Swiss Exchange is 9:00 a.m. to 5:30 p.m.
- Australia: Local time for the Australian Securities Exchange is 10:00 a.m. to 4:00 p.m.