Indian stock markets to align with global holidays | business | Hindustan Times
Today in New Delhi, India
Dec 05, 2016-Monday
-°C
New Delhi
  • Humidity
    -
  • Wind
    -

Indian stock markets to align with global holidays

business Updated: Nov 06, 2009 22:13 IST
Sandeep Singh
Sandeep Singh
Hindustan Times
Highlight Story

Aiming for a higher alignment of Indian markets with global markets to reduce the impact of global events on Indian stocks, brokers are looking at a lower number of trading holidays, with a favourable response from stock exchange managements.

“A proposal has been sent to the Association of NSE Members (ANME) and their central board has agreed to it,” said a source close to the development. “To take it forward, the associated risk of higher number of holidays has to be explained to regional brokers to make it unanimous.”

According to the source, NSE and the BSE are also in favour of reducing the number of trading holidays and the market regulator Securities and Exchange Board of India (SEBI) is also looking into the proposal.

“All they want is the letter from the association and they are ready to implement,” said the source.

The premier National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) have 23 trading holidays in 2009 as compared to eight trading holidays at the London Stock Exchange, nine at the New York Stock Exchange and 11 at the Singapore Stock Exchange.

Even the leading commodity exchanges in India, Multi Commodity Exchange (MCX) and National Commodity and Derivative
Exchange (NCDEX) have only seven trading holidays in 2009.

“More trading holidays raise the risk in an integrated market. If our markets remain closed on a critical day, a global event can impact Indian markets in a big way when it opens after two days gap and so we need to reduce holidays for proper integration and less risk,” said a senior official with a leading brokerage firm on conditions of anonymity.