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Indian stock market timings changed on August 3 as the NSE and the BSE introduced new trading rules. F&O trading now ends at 3:40 PM instead of 3:30 PM. The exchanges also started a Closing Auction Session for stocks with F&O contracts. The new system aims to set better closing prices and give traders extra time.
Regular trading for F&O stocks will now end at 3:15 PM. The Closing Auction Session will run from 3:15 PM to 3:35 PM. F&O trading will continue until 3:40 PM, giving traders five more minutes after the auction ends.
Zerodha CEO Nithin Kamath also spoke about the change on X. He wrote, “Things get a little more complicated from Monday, August 3.”
The Closing Auction Session will change how exchanges set closing prices. During the session, exchanges collect buy and sell orders from traders. The price with the highest number of matched orders becomes the official closing price.
The auction begins after regular trading ends at 3:15 PM. Exchanges first calculate a reference price before accepting orders. The process then moves toward order matching and the final closing price.
Stocks without F&O contracts will continue trading until 3:30 PM. The trade modification window will also remain open until 4:15 PM.
The new Stock Market timings mean different market segments will have different closing times. Traders will need to follow the new timings while planning trades and hedging positions.
The new system could improve price discovery near market close. It could also reduce sudden price movements during the final trading period.
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