Change in NSE Trading Hours
India’s largest stock exchange, National stock Exchange (NSE) has extended usual trading hours
in the interest derivative segment till 5 PM from February 23, 2023, onwards.
Now, as per a Business Standard report, NSE has now started consultation towards increasing
market trading hours in the equality segment as well.
Earlier, the trading hours for the cash segment on the NSE and BSE and the NSE future and
Options (F&O) has been between 9:15 AM and 3:30 PM. The NSE has now increased the closing
time by 1 hour and 30 minutes till 5 PM.
The market timings of the currency derivatives segment on NSE are 9 AM to 5 PM. The
commodity markets trade between 9 AM to 11:55 PM.
Earlier, in 2009, the market regulator Securities and Exchange Board of India (SEBI) allowed
exchanges to extend their trading time.
Additionally, SEBI allowed extending trading time in equity derivatives contracts till almost
midnight (from 9 AM to11:55 PM) in October 2018.
The benefit of extending trading hours would be that it will reduce overnight market risk.
The move to extend trading hours will aid traders in managing overnight market risk in a more
effective manner. This way, more market participants are likely to be attracted, including
mutual funds and foreign institutional investors (FIIs). However, increasing trading hours just by
a couple of hours will not be much beneficial to retail investors.
