Stock Market Timings in India

Stock Market Timings in India
by 5paisa Research Team 10/06/2020

Indian Stock Markets allow you to trade only during a specific timing of the day. As most of the investors in the country trade through National Stock exchange (NSE) and Bombay stock exchange (BSE) since they are the major exchanges in the country, we will cover the timings in which the two exchanges operate. Both NSE and BSE operate during the same timing. 
 

Overall Stock Market Timings in India - Opening and Closing Hours

Sessions

Times

Pre-opening session

9.00 a.m. – 9.15 a.m.

Trading session

9.15 a.m. – 3.30 p.m.

Closing session

3.40 p.m. – 4.00 p.m.


Trading in the equities segment takes place on all days of the week except Saturdays and Sundays and trading holidays declared by the Exchange in advance. The stock market timings are mainly divided into three sessions. They are Pre-opening, Regular trading and Post closing session. The timings of the equities segment are:

 

  • Pre-open session: 
     

    Order entry & modification Opens: 09:00 hours
    Order entry & modification Closes: 09:08 hours*
    *with random closure in last 1 minute. 

    One can start placing the order for any transactions during this period. Pre-open order matching starts immediately after close of pre-open order entry. Which means these orders are given preference as soon as the market hours starts as they are cleared of in the beginning. 

     

  • Regular trading session:
     

    Normal/Limited Physical Market Opens: 09:15 hours
    Normal/Limited Physical Market Close: 15:30 hours
     

    During these hours any transactions made follows bilateral order matching system, which means the demand and supply forces determine the prices. Since the Bilateral order matching system is volatile and includes several market fluctuations that create an impact on the security prices in the end, the multi-order system was formulated for the pre-opening session.


  • The Post Closing session:

     

    It is held between 15:40 hours and 16:00 hours. During this period, you can bid for the following day’s trade as this is post market closing session. If there are adequate number of buyers and sellers, bids placed during this period are confirmed. The transaction conducted for the bids placed during the period are not affected by the opening price of the market. Hence, even if the closing price exceeds opening share price, bids can be cancelled by investors, likewise if the opening price exceeds the closing price then an investor can release the capital gains. But this has to be done in the narrow window of per-opening session in between 9.00 am to 9.08 am.  


    Note: The Exchange may however close the market on days other than the schedule holidays or may open the market on days originally declared as holidays. The Exchange may also extend, advance or reduce trading hours when its deems fit and necessary.

  • After Market Order (AMO)

     

    AMO refers to the facility using which you can place orders to buy or sell stocks for the next day's trading before commencement of trading. This is useful for people who are unable to monitor the market at opening or during the trading session. AMO timings are 4:30 PM to 8:50 AM.

 

Muhurat Trading

 

Indian stock markets are generally not functional for any transactions on Diwali - it being a public holiday owing to the religious celebration across the country. However, since purchase of new products and investments are considered auspicious during the festival, Muhurat Trading has its own importance.

Although, there is no fix timing (5.30 p.m. to 6.40 pm.), it depends on the Muhurat (auspicious time) decided by exchange which may vary every year.

Next Article

5 Stocks to Benefit from Good Monsoon

5 Stocks to Benefit from Good Monsoon
by Nikita Bhoota 22/06/2020

Early monsoon is a sign of happiness for Indian equity markets. IMD predicted above-normal monsoon 102 percent long-period average (LPA) this year. The stock market usually reacts positively to normal or above average monsoon as it leads to increased farm production and increased demand from rural areas.  But, this year could be little different as Covid-19 pandemic has affected the economic activities at the global as well as domestic level. Although, the Covid19 cases are on rise but at the same time, the recovery rate is also increasing in India. Thus, this gives hope that the economy will normalise sooner or later.

Though, the Covid-19 disease has hit the performance of all the sectors in the economy. India's agriculture sector has been relatively less affected by the coronavirus pandemic. The monsoon has lot of significance as it not only improves agricultural demand but also results in employment generation, push auto sales and demand for everything like cement and steel. Thus, from the equity market perspective, tractor, two-wheeler, auto/rural financing, agrochemical and select FMCG companies will benefit from the good monsoon.

Below, we have discussed, 5 stocks that will benefit from good monsoon -

Company Name

1-Jun-20

June 19,2020

Gain/ (Loss)

Hero MotoCorp

2,327.25

2,353.50

1.1%

Coromandel International

651.25

720.8

10.7%

Hindustan Unilever

2,106.70

2,092.25

(0.7)%

Mahindra and Mahindra

461.4

499.9

8.3%

Escorts

971.6

985.05

1.4%

Source: BSE


Hero MotoCorp                    

Hero MotoCorp is India’s leading motorcycle manufacturer with ~51% share in the Indian domestic motorcycle market and ~35% share in the domestic 2W market (including scooters). Entry-level motorcycles in rural India are expected to post a faster recovery in sales post COVID-19 given good monsoon and a shift from public transportation to personal vehicles.

Coromandel International

Coromandel is the flagship company of the Murugappa Group and operates in fertilisers and other agri-input segments. It is India's second-largest producer of phosphatic fertilisers and is particularly strong in the South Indian states of Andhra Pradesh (AP) and Telangana.COVID-19 impact on company business has been marginal as it falls under essential service. IMD forecasts of normal monsoon bode well for its business.

Hindustan Unilever

Though, current macro-economic conditions are likely to keep demand subdued in the near-term However, HUL is likely to benefit in longer term as it is the largest FMCG company with one of the largest footprints in terms of products and distribution networks. Additionally, continued focus on strategy to target volume growth and decline in input costs should drive the financial performance in medium to long-term.

Mahindra and Mahindra

Mahindra & Mahindra (M&M) has significant exposure to the rural economy through its tractor division where it is market leader and commands 41.2% domestic market share as of FY20. The tractor segment to stay largely unaffected by demand side issues being faced by the rest of the automotive industry, due to stable outlook on rural incomes (on the back of good Rabi crop harvest, remunerative crop prices, healthy water table levels and expectations of a normal monsoon in 2020). The tractor segment would see a quicker revival than other automotive segments post Covid-19 and M&M will be the key beneficiary.

Escorts

Escorts is also a prominent tractor player domestically with more than 11 percent market share. With rural India relatively less impacted due to COVID-19, record food-grain procurement by government agencies as well as the expectation of normal monsoon 2020, the tractor industry is likely to outperform in coming years.
Next Article

What is going on in Telecom Sector in India?

What is going on in Telecom Sector in India?
by Nikita Bhoota 26/06/2020

The Supreme Court (SC) has provided time till the third week of July on adjusted gross revenue (AGR) for telecom companies (telcos) to submit financial statements and for the DoT to consider telcos’ proposals. Notably, the SC’s stance towards telcos has recently somewhat softened. It is likely that the SC has limited options, in terms of forcing telcos to make payments, and that it will eventually allow staggered payment of AGR dues. With the government keen on ensuring Vodafone Idea Ltd (VIL’s) survival, we expect an environment conducive for tariff hikes. Bharti and JIO should benefit from this; VIL’s survival is positive for Infratel.

Pending dues for Bharti Airtel and VIL:

The latest numbers quoted as AGR dues in media reports are Rs439bn/Rs582bn for Bharti/VIL. In February and March 2020, Bharti/VIL has paid Rs180bn/Rs68bn to the government. If one goes with the latest numbers mentioned in media reports, pending AGR dues for both companies come to Rs259bn/Rs514bn

SC gradually softening stance:

In the past 2 hearings, VIL’s Counsel and the government (Solicitor General) have repeatedly highlighted to the SC that VIL will neither be able to pay such a large sum upfront nor will its directors be able to furnish personal guarantees. They have also driven home the point that VIL will be forced to shut down, if the SC were to demand immediate payment. In our view, the SC is gradually coming round to this viewpoint, which possibly explains its softening stance. We expect the SC to eventually allow deferred payment.

The government may provide other relief measures:     

The government can also provide concessions to the industry, in the form of reduction of regulatory levy, interest rate for telco dues and GST rate, and allow a set-off of GST refunds against AGR dues. Regulation on floor prices may also come in a few months.The potential reforms that the government can consider -

  • LF and SUC cut: This is the revenue share paid to the government (LF + SUC) by telcos. It is currently 12%. TRAI has been asking the government to cut this to 8%.
  • Interest rate reduction: The government charges 9.75% interest on spectrum instalments. This was fixed in 2014/15, when rates were higher. G-Sec yields have, since, fallen by 200bps and the government can pass this on to telcos.
  • GST rate cut: The industry is making representations to the govt. to cut the GST rate on telecommunications, from 18% to 12%, considering the essential nature of telecom services.
  • Allowing a set-off of GST refunds against AGR dues: JIO/Bharti/VIL have GST credit of Rs200bn/Rs100bn/Rs80bn pending from the government. The government can consider allowing this as a set-off against AGR dues.
  • MTR regime extension: The current regime of 6p/min MTR is set to expire in December, 2020. TRAI has the option of extending this date, though the telcos which benefit would be influenced by the actual calling patterns at that time.
  • Cheaper spectrum: The government can increase spectrum supply and make it low-priced, so that extra traffic can be more comfortably accommodated.
  • Other indirect measures: are reduction in handset duties and incentives for local manufacturing, which can reduce cost for both, users and telcos.

 

Next Article

Yes Bank FPO: All details and How to Apply for Yes Bank FPO

Yes Bank FPO: All details and How to Apply for Yes Bank FPO
13/07/2020

The primary markets have been dry for the last four months due to the economic lockdown following the COVID-19 pandemic. Even as the economy is trying to recover from the lag effect of the pandemic, the capital market activity has already started. One such important issue is the Follow-on Public Offer (FPO) of Yes Bank that opens on 15th July and will remain open till 17th July.

What is follow-on public offer (FPO)?

An FPO is like an IPO, the only difference being that an FPO is by an existing listed company. An IPO is an initial public offer and is used to raise money from the capital markets as well as to list the stock. In the case of an existing listed stock like Yes Bank, the follow-on public offer route is used to raise fresh funds.

What are the highlights of the Yes Bank FPO?

The Yes Bank FPO opens on 15 July and closes on 17 July. Here are some of the key points you need to know about the Yes Bank IPO.

Particulars

IPO Details

Nature of Issue

Book Built FPO

FPO price range

Rs.12 to Rs.13

Market Lot

1,000 shares

Minimum order (Retail)

1,000 shares

Maximum order (Retail)

15,000 shares

QIB / NIB / Retail

50% / 15% / 35%


Yes Bank FPO Tentative Date/Timetable

FPO opens on

Jul 15, 2020

FPO Closes on

Jul 17, 2020

Basis of Allotment closes

Jul 22, 2020

Refunds Initiated

Jul 23, 2020

Credit to Demat Account

Jul 24, 2020

FPO shares listing

Jul 27, 2020

Shares of Yes Bank FPO will be listed on the BSE and the NSE. The FPO intends to raise nearly Rs.15,000 crore to shore up its Tier-1 capital and the number of shares will be based on the final price discovered in the FPO.

The FPO issue will be lead managed by 8 book runners; Axis Bank, BOFA Merrill, Citigroup, HSBC Securities, ICICI Securities, Kotak Mahindra Capital, SBI Capital Markets and Yes Bank. KFIN Technologies (formerly Karvy Computershare Ltd.) will be the registrar to the FPO.

Why is Yes Bank coming out with an FPO?

Yes Bank, it may be recollected, had been put under moratorium in early March 2020 by the RBI due to solvency concerns. However, the RBI intervened and syndicated a rescue of Yes Bank led by SBI along with a consortium of large Indian banks. Currently SBI owns close to 50% of Yes Bank. Out of the FPO issue, SBI also proposes to invest Rs.1760 crore in the offer.

Yes Bank FPO will be raising the funds for 3 reasons. Firstly, the bank needs to shore up its Tier-1 Capital urgently. Secondly, Yes Bank, like most of the other Indian banks, expects the gross NPAs to go up once the EMI moratorium is lifted in August 2020. Lastly, Yes Bank also needs the FPO to create a capital buffer so that it can start building its loan book to participate in the pick-up in the credit cycle.

Understanding the financials of Yes Bank

On a YOY basis, Yes Bank has witnessed a contraction in its assets and revenues due to the crisis that it had to face in March this year. That has also resulted in the bank booking huge losses in FY20. However, now Yes Bank has a major shareholder like SBI, which should give the much needed comfort and stability to the bank.

Particulars

FY-20

FY-19

FY-18

Total Assets

Rs.257,832 crore

Rs.380,860 crore

Rs.312,450 crore

Total Revenues

Rs.10,335 crore

Rs.14,488 crore

Rs.13,032 crore

Net Profits

Rs.(-16,433) crore

Rs.1,709 crore

Rs.4,233 crore

The challenge for the bank is recoup its business position in the coming quarters, with the major consolation being the unstinted backing of SBI.

How to apply for Yes Bank FPO?

Yes Bank FPO applications can be made through banks using the online ASBA facility. Application supported by blocked amounts (ASBA) is a facility to hold funds in your account without actually debiting the same. Investors are also permitted to apply through the broker’s trading interface, subject to their banks supporting ASBA.

It is always advisable to consult with your broker about the fitment of the FPO to your financial needs.

For 5paisa trading customers, you can log on to your Demat cum Trading Account via www.5paisa.com or use the 5paisa app for investment.

Know the steps to invest in Yes Bank FPO - 

Next Article

Mahindra Finance Rights Issue: Details, Price, Issue Size

Mahindra Finance Rights Issue: Details, Price, Issue Size
29/07/2020

M&M Financial Services has a rural and semi-urban customer base as it is involved in financing new and pre-owned tractors, utility vehicles, cars and commercial vehicles. The purpose of the issue is to repay/prepay certain outstanding borrowings, augment long-term capital and resources for meeting funding requirements for the company’s business activities and for general corporate purposes.
 
The issue that has been announced at the steep discount is been managed by Kotak Mahindra Capital Company, ICICI Securities, BNP Paribas, Axis Capital, HDFC Bank, Citigroup Global Markets, HSBC Securities and Capital Markets (India), SBI Capital Markets, and Nomura Financial Advisory and Securities (India).
 

Issue Details

Equity Shares being offered by the Company

617,764,960 Equity Shares

Issue Size

? 3,088.82 Crore(Assuming full subscription)

Rights Entitlements

1 (one) Equity Share for every 1 Equity Share held on the Record

Date

Record Date

July 23, 2020

Issue Price

? 50 per Equity Share (including a premium of ? 48 per Equity

Share


How to apply M&M Financial Services Rights Issue? 
 
There are 3 ways to apply for M&M Rights. 
 
ASBA
For this option, you need to have a Demat Account. Search for M&M Financial Services Rights Issue, fill the required details and submit. 
 
R-WAP
You can visit rights.kfintech.com (website). Go to Mahindra Finance option there and click on R-WAP apply for rights issue option. Fill the required details and submit. You can make payment through net banking or UPI.
 
Offline 
You must have received an application form in your registered email id by the company. Fill in all the required details and submit the print out of the form to the bank, where you can pay by DD/cheque.  
Take a look at the video below to know in detail:

Should Investors Subscribe to the Rights Issue?

 

It is always advisable for an investor to look beyond the discount offered. The rights issue is different from the bonus issue as one is paying to get additional shares of the company. So, it is best to subscribe to it only if the investor is completely sure of the company’s long-term performance.

Issue Schedule

Issue Opening Date

Tuesday, July 28, 2020

Last Date For On Market Renunciation Of Rights

Entitlements*

Friday, August 7, 2020

 

Issue Closing Date^

Tuesday, August 11, 2020

Finalisation Of Basis Of Allotment (On Or About)

Thursday, August 20, 2020

Date Of Allotment (On Or About)

Friday, August 21, 2020

Date Of Credit (On Or About)

Tuesday, August 25, 2020

Date Of Listing (On Or About)

Thursday, August 27, 2020

Next Article

5 Well Known Stocks that Outperformed Benchmarks in FY20

5 Well Known Stocks that Outperformed Benchmarks in FY20
by Nikita Bhoota 06/08/2020

From the general election to the slowing economy to coronavirus pandemic, FY20 witnessed it all. Share markets have been is under pressure since the coronavirus (COVID-19) pandemic broke in the country and all over the world. Domestic stock market benchmarks Sensex and Nifty slumped 24% and 26% respectively from 1st April 2019- 31st March 2020, posting their worst performance in over a decade. In 2008-09, the Sensex had declined 37.9%, while the Nifty50 cracked 36.2% on account of global financial crisis. Apart from these, factors such as massive corporate tax rate cuts, tussle between the RBI and the government, Union Budget, repo rate cuts, Ayodhya verdict, abrogation of Article 370, US-China trade deal were among the major triggers in FY20. However, even during this fall in markets, there are certain shares that not only outperformed the benchmark, but also gave investors stellar returns during the year. 5paisa have picked five such stocks that have outperformed the Nifty50 in the past financial year and have been strong despite tough economic conditions.

Company Name

1-Apr-19

31-Mar-20

Gain

Abbott India Ltd.

7,256.2

15,455.5

113.0%

Gujarat Gas Ltd.

147.1

232.6

58.1%

Berger Paints India Ltd.

329.6

497.4

50.9%

Nestlé India Ltd.

10,895.6

16,302.4

49.6%

Avenue Supermarts Ltd. (DMart)

1,493.9

2,200.7

47.3%

Source: Ace Equity

Abbott India

Abbott India has given stellar returns, gained 113% in FY20.  This stock is not deterred by the current pandemic. The Pharma MNC stood strong despite the crash in markets. The company’s 9 out of top 10 brands are leaders in their respective participating markets and their rigorous restructuring measures have aided to achieve this market-beating performance. Over the years, the company has also operated with a net debt-free structure having more than sufficient cushion of cash.

 

Gujarat Gas

Gujarat Gas share price gained 58.1% in FY20. Gujarat Gas (GGL) is an amalgamation of Gujarat Gas Company and GSPC Gas. Gujarat Gas is India's largest city gas distribution player, with a total sales volume of 6.2mmscmd and presence across 24 districts in the states of Gujarat and Maharashtra and the Union Territory of Dadra Nagar Haveli. It has a network of a 15,000 km-long gas pipeline and 291 CNG stations, constituting 25% of all CNG stations in the country.

 

Berger Paints

The stock gave magnificent return of 50.9% in FY20. It has not only managed to outperform Nifty 50 but also the country’s largest paint company Asian Paints. Berger has presence in the decorative paints and industrial coatings segments in domestic and international markets. Further, it has a presence in external insulation finishing systems. In the industrial coatings segment, Berger caters for the protective coatings, automotive (primarily two-wheeler and three-wheeler, and commercial vehicles) and general industrial segments. In the international segment, Berger has a presence in the decorative paints segment in Nepal and has presence in the external insulation system in Poland (where it is the second largest player, with 11-12% market share through Bolix SA, which it acquired in 2008 for US$39m. It has the second-largest distribution network, with more than 23,000 dealers.

 

Nestlé India Ltd

Nestlé India, the Maggi maker, has also gained over 49.6% in FY20. The company primarily operates in four segments, viz. Milk Foods & Nutrition, Chocolates & Confectionery, Prepared Dishes & Beverages.

Nestlé India has strong brands like Cerelac, Lactogen Nestlé Dahi and Slim milk (Milk food and nutrition), Maggi (Prepared dishes), KitKat (Chocolates) and Nescafé (Beverages) under its fold. Company has seen strong growth in its Maggi and chocolate brands during the CY19.

 

Avenue Supermart (DMart)

Avenue Supermarts (DMart) shares were up 47.3% in FY 20. DMart is an emerging supermarket chain, with major presence is in the states of Maharashtra, Gujarat, Telangana and Karnataka. DMart operates most of its stores in densely located areas and focuses on customers in the lower and middle class segments of society. DMart provides lower prices for its products across various categories and sub-categories, which is appealing to the price-sensitive customers. In order to minimise operational costs, the company follows an ownership model (including long-term lease contracts, where lease period is over 30 years), rather than a rental model.