The Indian stock market, including the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE), provides many investment choices for people and organizations. Companies from different sectors trade their shares here, offering opportunities for growth and income. It operates through different sessions like pre-market, regular-market, and post-market sessions.
What is Post Market Session in the stock market?
The post-market session refers to the period after the regular trading hours when investors can continue to buy and sell stocks outside the regular trading session. This session, also known as the post-close session in the Indian stock market, is significant in providing extended trading opportunities for investors and institutions alike.
Post-Market Session Timings
The duration of the post-market session typically varies but usually lasts for a limited period after the market closes. The post-market session commences immediately after the regular trading hours end at 3:30 PM. It runs from 3:40 PM to 4:00 PM on weekdays. During this brief window, investors can submit orders to buy or sell stocks at the previous day’s closing price. While trading isn’t as active as regular hours, it allows placing orders in advance for the next day’s opening. The post-market session also allows investors to react to late-breaking news, corporate announcements, and global market developments that may impact stock prices.
The post-closing session is divided into two parts:
3:30 PM to 3:40 PM – In these 10 minutes, the closing price of the stock is calculated based on the average price of the stock traded from 3:00 PM to 3:30 PM. This period is crucial as it also influences the closing price of major indices like Nifty and Sensex, which are determined by the average prices of all stocks traded that day.
3:40 PM to 4:00 PM – This marks the final segment of the day, during which stocks can still be traded. If there are adequate buyers and sellers of stocks, the orders will be executed.
Orders in Post-Market Session
Investors are allowed to place different orders during the post-market session, similar to regular trading hours. Market, limit, and stop orders are commonly used to buy or sell stocks during this extended trading period. However, investors should know that liquidity may be lower during the post-market session, and prices may be more volatile than regular trading hours.
Trading After Normal Market Hours
Trading during the post-market session lets investors react to events and news after regular trading hours. It grants flexibility and convenience to investors who might have faced difficulty executing trades during the day. However, trading during this extended session requires careful consideration of market conditions, risk management strategies, and investment objectives.
How do you buy stock after the market closes at 3:30 PM?
After the regular trading hours close at 3:30 PM, investors can still buy and sell stocks through the post-market session. To buy stocks during this time, investors must use their brokerage accounts or online trading platforms supporting post-market trading. It’s essential to check if the stocks of interest are available for trading during this extended session.
Calculation of Closing Price
During the post-market session, the closing price of stocks is determined based on the last traded price. This closing price is crucial for various purposes, including portfolio valuation, index calculation, and performance assessment. The closing price reflects the final transaction price of a particular stock at the end of the trading day, providing investors with important reference points.
Prices on Different Stock Exchanges
The post-market session is not exclusive to India’s National Stock Exchange (NSE). Other stock exchanges worldwide, including the Bombay Stock Exchange (BSE), offer similar extended trading sessions. The post-market session NSE allows investors to trade stocks listed on the NSE after regular trading hours, providing additional opportunities for portfolio management and risk mitigation.
In conclusion, the post-market session in the Indian stock market offers investors an extended window to trade stocks beyond the regular trading hours. Understanding the timings, order types, and price dynamics during this session is essential for making informed investment decisions. While the post-market session provides additional trading opportunities. Investors should be careful and do thorough research to reduce risks and make the most of their investments.
*Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as recommendation or investment advice by Research & Ranking. We will not be liable for any losses that may occur. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL, and certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
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FAQ
Can I invest after 3.30 pm?
Yes, you can invest after 3.30 pm in the Indian stock market through the NSE post-market session. This extended trading period allows investors to buy and sell stocks after the regular trading hours conclude. The NSE post-market session allows one to react to late-breaking developments and adjust investment strategies accordingly. However, it's important to note that liquidity and price movements may vary during this session.
Can we buy in the post-market session?
Yes, investors can buy stocks in the post-market session on the NSE (National Stock Exchange) in the Indian stock market. The post-market session extends trading opportunities beyond regular hours, allowing investors to execute orders after the market closes. During this session, it's crucial to check stock availability and be aware of potential liquidity and price fluctuations to make informed investment decisions.
How is post-market calculated?
In the post-close session in the Indian stock market, the closing price of stocks is calculated based on the last traded price during the extended trading period. This calculation determines the final transaction price of a stock at the end of the trading day.
The closing price is a crucial reference point for various purposes, including portfolio valuation and performance assessment.
I’m Archana R. Chettiar, an experienced content creator with
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