Date:October 24, 2009
Ref. No. MPML/pms/329/2009
Market trading hours may be extended to 9am-5pm
You may soon be able to trade in the Indian stock markets between 9 am to 5 pm, with the Securities and Exchange Board of India (SEBI) giving the go-ahead for stock exchanges to extend trading hours.
The rationale: The market regulator believes it is important to align Indian markets as far as possible with international markets, as it would attract international trading.
The stock exchanges will take a final decision in this regard even though both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) had been calling upon the regulator to allow trading hours to be extended and sources say the NSE may soon implement the extended trading hours.
The stock exchanges asked for a time extension in trading hours to counter the emerging Singapore-based SGX Nifty, which opens at 8am India time, and which could be impacting volumes on BSE and NSE.
The extension of trading hours may attract new sets of investors, particularly from abroad. The market's trading volumes may also go up, as a result. The opening and the closing hours account for 50% of the trade but the extra hours would be more, so there could be a 15-20% increase in volumes.
WIN-WIN SITUATION
Institutional investors will benefit from the advancing of trading time in the morning, while day traders will have more time to react to European markets.
Also, retail investors are likely to get more time to track their portfolio and even book trades after finishing their regular work. However, analysts tracking corporate developments may have to wait longer, as most companies make market sensitive after trading hours.
Thanks and regards,
PMS Team