The US is one of the most attractive destinations for investors around the world, thanks to its large and diverse economy, innovative companies, and liquid financial markets. However, if you are an investor based in India, you need to be aware of the time differences and trading schedules that affect your investment decisions. In this article, we will explain the regular trading hours of the US markets, how they vary across different timezone and public holidays, and how you can plan your investments accordingly.
What time does the US market open and close in India?
The US stock market has two main exchanges: the NASDAQ and the NYSE. They usually open for trading from 9:30 AM to 4:00 PM Eastern Time, Monday to Friday. For Indian investors, this translates to 8:00 PM to 2:30 AM Indian Standard Time (IST). This timing may pose some challenges for those who want to trade during the US market hours, as it overlaps with their evening and night. However, Vested offers a convenient solution for investing in the US market regardless of the time difference.
3 Things you need to know about US stock market operating hours
1. Regular trading hours
The US stock market operates on a standard schedule from Monday to Friday, excluding public holidays. The main exchanges, such as the Nasdaq or the New York Stock Exchange (NYSE), open at 9:30 am Eastern Time (ET) and close at 4:00 pm ET. This gives investors six and a half hours to execute their trades during the core market hours.
2. Daylight saving time
The US stock market timings are also influenced by daylight saving time (DST), which is observed from the second Sunday of March to the first Sunday of November. During this period, the US clocks are advanced by one hour, which means that the stock market opens and closes an hour earlier than usual. For Indian investors, this means that the US stock market opens at 7 pm India Standard Time (IST) and closes at 1:30 am IST during DST, and opens at 8 pm IST and closes at 2:30 am IST for the rest of the year.
3. Pre-market and after-hours trading hours
In addition to the regular trading hours, some investors may have access to extended hours, which allow them to trade before and after the core-market hours. The pre-market trading hours run from 4:00 am ET to 9:30 am ET, and the after-hours trading hours run from 4:00 pm ET to 8:00 pm ET. However, extended trading hours are subject to higher risks, such as lower liquidity, fewer participants, and higher volatility. Moreover, not all investing platforms offer extended trading hours, so you need to check with your broker before you decide to trade during these periods
Knowing the US stock market timings can help you plan your investment strategy and optimize your returns. However, as a long-term investor, you do not necessarily need to monitor the markets on a daily basis but rather focus on the fundamentals and performance of your portfolio.
Here’s a simplified breakdown of the main US stock exchange trading times in Eastern Time (ET):
Exchange | Pre-market hours | Regular hours | After market hours |
Nasdaq | 4:00 AM – 9:30 AM | 9:30 AM – 4:00 PM | 4:00 PM – 8:00 PM |
Dow Jones | 4:00 AM – 9:30 AM | 9:30 AM – 4:00 PM | 4:00 PM – 8:00 PM |
NYSE | 4:00 AM – 9:30 AM | 9:30 AM – 4:00 PM | 4:00 PM – 8:00 PM |
Here’s a simplified breakdown of the main US stock exchange trading times in Indian Standard Time (IST):
Exchange | Pre-market hours | Regular hours | After market hours |
Nasdaq | 1:30 PM – 7:00 PM | 7:00 PM – 1:30 AM | 1:30 AM – 5:30 AM |
Dow Jones | 1:30 PM – 7:00 PM | 7:00 PM – 1:30 AM | 1:30 AM – 5:30 AM |
NYSE | 1:30 PM – 7:00 PM | 7:00 PM – 1:30 AM | 1:30 AM – 5:30 AM |
Vested provides always-on market access
When you use the Vested app, even if the US stock market is not open, you can still enter your buy or sell orders. Here’s how it works.
When the market is closed, whenever you enter orders, they are queued in our system to be submitted when the market opens. As a result, when you use the Vested app, stock investments don’t have to pause when the Nasdaq or the NYSE are closed. With Vested’s order queuing system, all your planned trades – whether buying or selling – during off-hours will be executed as soon as the market opens again.
When you enter buy or sell orders when the market is closed, the price of execution, determined when the market reopens, may differ from the price you enter. This is especially true during periods of heightened volatility. Savvy investors can mitigate this risk by using limit and stop orders, both are available on the Vested platform.
Investing in US stocks is a good way to diversify your portfolio and hedge against the depreciation of the INR
One of the benefits of investing in the US stock market is that you are also exposed to the USD currency, which can help you diversify and preserve your portfolio value against the depreciation of the INR (Rupees). By allocating some of your funds to US stock markets, you can also hedge against future economic shocks that would otherwise adversely impact the value of your investments in India.
In conclusion
- The US stock market operates from 9:30 AM to 4:00 PM EST, corresponding to 7:00 PM to 1:30 AM IST for Indian investors.
- Daylight Saving Time (DST) shifts trading hours an hour earlier from March to November.
- Pre-market and after-hours trading carries higher risks due to lower liquidity and volatility.
- The Vested app allows queuing orders during market closure for execution when it reopens.
- Investing in US stocks diversifies portfolios and hedges against INR depreciation.
- Be aware of US stock market holidays for planning investment strategy.
Frequently Asked Questions
What are the regular trading hours for the US stock market in India?
The US stock market operates from 9:30 AM to 4:00 PM EST, which is 7:00 PM to 1:30 AM IST for Indian investors.
How does Daylight Saving Time (DST) affect the US stock market hours in India?
During DST (March to November), the US market opens an hour earlier than usual for Indian investors, at 7 pm IST, and closes at 1:30 am IST.
Are there extended trading hours for US stocks?
Yes, pre-market trading runs from 4:00 am ET to 9:30 am ET, and after-hours trading runs from 4:00 pm ET to 8:00 pm ET. However, extended hours carry higher risks.
How does the Vested app allow investing during market closure?
The Vested app queues buy or sell orders during market closure and execute them as soon as the US market reopens.
Can I place a limit order to buy US stocks from India?
Yes, as an Indian investor, you can place a limit order to buy US stocks through a brokerage account that allows international trading. Many Indian brokerages and international brokers provide this service to their clients.
Can I sell my shares in the closed market US trading time from India?
Yes, you can place a sell order for your US stocks during closed market US trading time from India. Many brokerages allow you to place orders during extended hours, which includes pre-market and after-hours trading sessions. However, the execution of your order may not take place until the market reopens for regular trading hours.