Nasdaq plans to expand trading hours for stocks and exchange-traded products from 4 p.m. to 11 p.m., five days a week, Reuters reported. Currently, Nasdaq hosts three daily sessions on weekdays: the pre-market session from 4:00 AM to 9:30 AM Eastern time, the regular market session from 9:30 AM to 4:00 PM, and the post-market session from 4:00 PM to 8:00 PM. “When Nasdaq moves to 5/23, it plans to host two trading sessions, with the day session beginning at 4:00 AM and ending at 8:00 PM, followed by a one-hour break for maintenance, testing and clearing of trades. The night session beginning at 9:00 PM and ending at 4:00 AM the next calendar day,” the report said.
The U.S. market accounts for nearly two-thirds of global stock market capitalization, while foreign holdings of U.S. stocks reached $17 trillion last year, underscoring the scale of global participation that Nasdaq is trying to tap.
For Indian markets, the most immediate impact would be the flow of information and timing of sentiment, rather than long-term market behavior.
Ross Maxwell, Global Strategy Operations Lead at VT Markets, said continued trading in the US would mean price movement from an Indian perspective no longer stops overnight. Currently, the moves in the US market are largely reflected in Indian stocks at the opening bell of the next day. With 24-hour trading, Indian investors would be able to respond to developments in the US markets well before domestic trading begins. “This could increase volatility overnight, especially in sectors such as IT, pharmaceuticals and metals, which are more sensitive to global signals,” Maxwell said.
He added that sharper opening gaps and higher volatility could become more common in the short term as global news and earnings updates are priced in continuously rather than in discrete jumps.
However, Maxwell noted that the broader nature of Indian markets is unlikely to change significantly. Domestic growth, corporate profits and policy factors will continue to drive long-term investment decisions, even as short-term sentiment becomes more reactive to global risk signals.
The overlap between US trading hours and early Indian market hours could also provide tactical opportunities for experienced investors. Maxwell said participants with access to global platforms may be able to exploit short-lived price differences between US-listed American Depositary Receipts and their India-listed counterparts.
However, such arbitrage opportunities are expected to be transient due to transaction costs and capital controls, limiting their usefulness for most retail investors. For individuals, the greater benefit may come from clearer directional cues rather than systematic arbitrage.
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On the currency front, the impact is expected to be modest. The foreign exchange market already trades 24 hours a day, which should dampen any structural shift in USD/INR. Still, sharper moves in US stocks during Indian trading hours could lead to faster adjustments in foreign portfolio flows, resulting in more intraday volatility in the rupee than overnight swings.
(Disclaimer: Recommendations, suggestions, views and opinions expressed by the experts are their own. These do not represent the views of Economic Times)
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