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Market timings likely to change

This article was posted on Oct 24, 2009 and is filed under Market News

Now Traders will need to wake up early, as Market regulator Securities and Exchange Board of India (Sebi) has allowed stock exchanges to extend the trade timing by 2.5 hrs so instead of 10 am-3.30 pm its likely to be from 9 am to 5 pm.

This moves adds 2.5 more hours of trading both to NSE and BSE. Tough market-met are not sure how this move would affect them, but they certainly now need to keep track of stocks for much longer.

A normal impact would be an increase in the volumes that are Traded in NSE & BSE. It would also help the Investors to react to Global market ques & corporate images.

NSE had been pushing for extended trading hours, mainly on the premise that it was losing business to Singapore Stock Exchange , which has launched a derivatives product on NSE’s nifty index, SGX nifty. Often FIIs trade in this product before the Indian market opened and subsequently the domestic traders pick up the cues.

Most of the developed countries have trading hours ranging from 7-8 hours, Indian markets currently trade for only 5.5 hours. Markets are more likely to react more to the International news flow.

G N Bajpai, former chairman, Sebi, said the extension of time would help traders take appropriate positions based on global developments. “The markets are linked globally today… the extension of trade timing will help traders…”

Lets hope that the extended traded hours help Traders and Investors to make more profits. Tough SEBI has okayed the move, its not yet finalized.

The new market timings would not come in affect soon, many changes need to be done in order to extend the timings. The exchanges have to prepare for the infrastructure which is going to take at-least 1-2 months and also the brokerage houses will need to make certain changes.

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