• Most of you are aware of the normal trading hours in the stock market exchanges (i.e from 9:15 AM to 3:30 PM), but do you know there is a time slot between 3:30-4:00 PM during which the exchanges (BSE & NSE) are not closed? In fact, the exchanges even allow trading during part of that period.

  This session (3:30 pm-4:00) is called the Post Market session.

  Let’s understand all about it.

  From 3:30-3:40 pm – Closing Price Calculation

  • • During these 10 minutes,  the exchanges calculate the closing price of all the stocks, indices and derivatives.
    • The closing price is calculated by the weighted average of prices from 3 PM. – 3.30 PM.
    • For the stocks it is very easy – you just take the weighted average price from 3:00 PM-3:30 PM and you get their closing price
    • But for indices such as Nifty, Sensex, S&P Auto, etc. the weighted average prices are calculated from that of their constituents 

  From 3:40-4:00 pm – Post Market Session

  • • After the closing price is calculated, the exchanges open up for one last round of trading
    • This session from 3:40-4:00 pm is called “Post Market Session”
    • You can place buy or sell orders

• Important Points 

  • • You can only place delivery (i.e CNC) type of orders
      No intraday orders (MIS, BO & CO) are allowed
    • You can only trade in the Cash segment
      No trading is allowed in futures and options
    • Irrespective of what price you place the order, the order will always be placed at the “closing price”
      For example, if the closing price of TCS at 3:30 PM is Rs. 3500, between 3:40 PM and 4:00 PM, you can place market orders to buy/sell TCS at the market price (will be taken at Rs. 3500)
    • Volumes are very low during this session
      If you have any new information about a stock that was not available till 3:30, then it makes sense to buy or sell during the post-market session, else, there is no point in trading or placing orders during this time

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