Stock markets trading on BSE, NSE at 9 AM from Friday - Opening bell at the country’s two premium stock exchanges BSE and NSE will ring an hour early at 9 AM effective from Friday, with both stock exchanges encouraging trading hours to adjust the timings with that in main Asian arenas.
Arising challenge and competition from BSE that yesterday advanced timings by 10 minutes powered the National Stock Exchange to advance its trading hours by 55 minutes to 9 AM. Not to fall back, Asia’s oldest stock exchange, i.e. Bombay stock exchange with in few minutes declared its changed timings matching up with NSE.
Yesterday, after advancing the timings to 9.45 AM, BSE adopted it today afternoon by stating that it will begin trading on the block deals counter at 9.45, being effective from Friday. By evening, picking up of cues from BSE and NSE declared extending the trading hours. As a result, trading hours would be leaded on both the stock exchanges by almost an hour. Currently, trading starts at 9.55 AM and closes at 3.30 PM.
A BSE spokesperson told that, “We have decided to advance the timing to 9 am from Friday.” Yesterday, BSE, the Bombay stock exchange commenced that extending the timing would raise its trading volumes and business by aligning with the Asian markets.
On the contrary, a NSE spokesperson stated, “NSE is advancing the trading time to 9 AM effective from Friday.” In addition, NSE managing director and CEO, Mr. Ravi Narain said to a TV news channel that, “With the change in other exchange’s (BSE) timing, our market participants were concerned…there was a small sense of inevitability.”
Both stock exchanges are expecting this move will help them to ramp up their volumes. Including brokerage houses, market participants had given a mixed reaction to the development. Whereas some market players think that the extension would help in lowering down volatility and improvising trading volumes and helping in catching up with trading in Singapore and Hong Kong markets, while some conceive that this move will be a fruitless exercise.
With the extension of timings, both NSE and BSE were enlisted in a race for acquiring more volumes. Currently, NSE has taken a big lead over BSE in regards of turnover both in equities and cash. The BSE has clocked a turnover of Rs. 1, 04,998.72 crore of total equity turnover in November 2009.
The total average daily turnover of the BSE is evaluated at Rs. 5,257.10 crore in November. The average daily turnover in A group is determined at Rs. 3,765.88 crore and B Group at Rs. 1,323.29 crore in November.
On other hand, NSE had an average daily traded value of Rs. 15,170.55 crore with nearly 1,317 securities traded in November 2009. The market capitalization stood at Rs. 5,024,830 crore in October 2009.
Currently, almost all of the Rs 80,000 crore worth of derivatives volumes take place on the NSE. In the cash market too, the NSE accounts for 75% of the trading volumes. Besides this, in the month of October, market regulator SEBI granted stock exchanges to fix trading timings between 9 am to 5 pm.
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