Trading Hours to be Extended Till 11:30 P.M.?

NSE seeks SEBI approval for extended trading hours, with sessions potentially running until 11.30 p.m. 

Traders Can React Faster to Global Events

The move aims to help Indian traders react faster to global events, but broker infrastructure and staffing pose challenges.

Benefits for Retail and Derivative Traders

Extended hours benefit retail traders for portfolio hedging and derivative traders for adjusting positions based on global cues.

Infrastructure Adjustments

Adapting to longer hours requires significant changes in infrastructure, posing challenges for brokers and staff.

Impact on Trading Volumes

Extended hours are expected to increase trading volumes and reduce gap-up or gap-down market openings.

Arbitrage Opportunities and Price Mismatches

Longer hours may create price disparities between cash and derivatives markets, requiring enhanced risk management.

Derivatives Market Turnover

Indian derivatives market ranks second globally in turnover, raising questions about the need for additional trading volumes.

Source: Moneycontrol