Mixed reactions on trade time extension

Market participants including brokerage houses today gave mixed response to the announcement of near one hour extension in trading hours by country's two prime bourses-- National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).

Some market players believe the extension in timings would help in reducing volatility, improve trading volumes and help catch up with trading in Hong Kong and Singapore markets, while some think the move may be a futile exercise.

"The move is good for investors as it will reduce volatility in the market. In the short to medium term volumes will improve due to the extension in timings. Larger broking houses are prepared to take up the pressure of longer trading hours," Angel Broking Executive Director (Equities) Vinay Agarwal said.

On the other hand, some brokers believe the trade time extension would solve no purpose as Indian markets would still be lot behind the Singapore bourses.

Arun Kejriwal, director, Kejriwal Research and Investment Services (KRIS) said: "It will make life miserable for all those who are trading as they is no way we can catch with Singapore markets as we can not eliminate the two and a half hour time gap."

The NSE and BSE today said the advancement of the trading timing to 9 am with effect from December 18, Friday from 9.55 am earlier. The market closing time would remain same at 3.30 pm, officials of both exchanges said.

"The exchanges are competing with each other as they expect volumes to increase drastically after the time extension, but the eventual impact of the move will be visible only when the trade on new timings starts, a trader said.

"We are happy that the market timings have got extended, greater overlap with Asian markets will help reduce risk. I also feel that trading holidays must also be reduced for next year to reduce risk due to global factors," ICICI Securities' Executive Director Anup Bagchi told PTI.

Meanwhile, HDFC Securities Head (Private broking and wealth management) Vinod Sharma said: "The move is unwarranted, the objectives with which the exchanges are trying to align the timings with Singapore are not being achieved. It will bring in a lot of discomfort for investors as many of they like to trade in the morning when the market opens. It is doubtful whether the volume will increase."