It all started with SEBI, allowing exchanges to extend the market hours for so called some reasons. After that, day before yesterday, Bombay Stock Exchange (BSE) has decided to pre-pone market opening just by 10 minutes i.e. 9.45 AM from Friday, 18th December. And I dont know by extending market hours by just 10 minutes what BSE was expecting. The first mistake BSE did is hurridly extended market hours without the consent of NSE and market participants. 2nd mistake is it has given just 72 hours to implement this new market opening time. 3rd is whether they have consulted banking people for operation purpose of fund transfer & etc.
After seeing BSE move, NSE came up with the new timing for market opening @ 9 AM yesterday evening and that too from Friday i.e. on 18th December. Just 48 hours to implement new timing of one hour pre opening of market. And the statement from NSE was that they left with no option after BSE's decision to prepone the market hours opening time by 10 minutes.
After this, BSE also came with a statement that they will also start their operation @ 9 clock as NSE is starting its operation from 9 o clock.
But due to strong oppose from the brokerage industry & other market participants both NSE & BSE together came with a statement that the new timing will be implemented from 4th January. Is this the way Asia's oldest & Asia's one of the largest exchanges behave that too being in same country & controlled by same board.
So all this circus is to attract volumes that in turn to attract more revenue for exchanges & brokerage houses right? But all in this process there are many fundamentally or technically (whatever you say) flawed assumption. Like...
1. Reason for extension of market hours?
Is this to attract volumes from SGX (Singapore) Nifty? I doubt that, because first of all Singapore Straits starts its operation from 7 AM IST that is 2 hours before the proposed new timing. And I doubt that people who are trading SGX Nifty in Singapore will opt to India just because of timing, rather I think people are trading in SGX Nifty because of regulation differences between India & Singapore.
And in addition to that I feel that volume does not fully depend upon market hours. I mean if market is lackluster there will not be average volume also & if market is one sided or range bound or volatile, that day volume will be very high.
2. Or this move is align with world market's timing?
Again I wonder what about European & US markets then? European markets open around 12.30 to 1.30PM and US market around 8 PM.
3. Banking operation?
How can they expect banking & its operation to cooperate within this short span intimation of new timing for funds pay in & payout request.
4. Trader community
How can they expect to traders/dealers to cooperate with such a long trading timing from 9 to 3.30 i.e. six & half hours of trading, without a break. And it cant be done by shift wise also adviser/dealer only knows how his client trades & what positions he is holding.
5. And final thing, is longer market hours really needed?
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