NSE Extended Trading Hours 2018 Impact

NSE working hours extended by SEBI

SEBI has approved the extension of market trading hours in equity derivatives segment. The revision of trading duration extends up to 11.55p.m.

The timing is expected to be extended effective from 1 October 2018. The current equity derivatives market timing happens from 9 am to 4 pm.

Dow jones & NASDAQ Index are currently following this pattern. In India, trying this kind of strategy may or may not work out according to analyst.

The primary reason behind this is that, the man power is available but the required technology is not that sound as it is supposed to be.

There are two interesting thing to ponder upon.

1. MCX did not have option trading strategy earlier, which is now being implemented one by one.

2. NSE did not offer the timing like MCX, which has now been approved by SEBI.

Both the above said factors are a result of the circular passed by SEBI that trading can be done under a single entity which is unique and this would turn out to be good for the future.

The Securities and Exchange Board of India has brought in this move targeting investors dealing in Indian products on overseas exchanges in Singapore and Dubai. Better position with commodity markets is expected in the course of implementation of universal exchanges which function till 11:55 pm.

What would be the impact of this NSE time extension in commodity derivatives?

Morning to evening the Indian trading would function as usual. The quarterly statements, financial results of companies after the market hours will give us a picture on price movement.

News based movements, i.e the fundamental news can be utilised in a great way for the trading process. To add on to this, RBI rates will also be offered after market hours, which can be used to the benefit of traders.

International market impact and currency fluctuations will be seen in the derivatives market.

Some analysts feel volatility may or may not happen in the expert opinion.

SGX (Singapore Nifty) will function even after our Indian market hours, so our market is likely to travel in the same way.

However, the broker’s expenses would see n increase with this move to extend the timings, which would reflect an indirect impact on the clients.

Too add on some facts that occurred in the past, SEBI had permitted trading in derivatives segment till 5.30p.m whereas the exchange had winded up the trading timing by 3.30p.m itself.

Now, in order to raise the standards to the requirements of the global market movement, SEBI has once again approved the extension of market trading hours to 11.55p.m. We need to wait and watch as and when the game begins.