The National Stock Exchange (NSE) has announced an extension of equity derivatives trading hours by 10 minutes, with the market now closing at 3:40 pm instead of the current 3:30 pm. According to an NSE circular, this change will come into effect from August 3, 2026. The pre-open session timings in the derivatives segment will remain unchanged, with trading beginning at 9:00 am and the pre-open session ending at 9:08 am through a system-driven random closure in the final minute. The normal market session will continue to open at 9:15 am. As per the revised schedule, the normal market closing time of the equity derivatives segment has been changed to 3.40 PM from the current 3.30 PM. This strategic shift is designed to ensure a smoother and more consistent end-of-day transition between cash and derivatives markets, with the exchange stating that the changes are aimed at ensuring a smoother and more consistent end-of-day transition between cash and derivatives markets.
The NSE will introduce the Closing Auction Session (CAS) framework in the equity derivatives segment from August 3, 2026, representing the most significant change to market operations. Under this new system, stock futures will be assigned a fresh reference price at 3:15 PM and a static price band of plus or minus 3% will apply until market close at 3:40 PM. Any pending orders outside the revised price band will be cancelled by the exchange. The Closing Auction Session is being introduced for stocks that have listed derivatives contracts, replacing the current system where closing prices are determined using the volume-weighted average price (VWAP) of the final 30 minutes of trading. According to The Economic Times, the auction process discovers a fair closing price based on orders entered during the designated session, with participants able to enter both market and limit orders between 3:20 pm and 3:25 pm, followed by limit orders only from 3:25 pm to 3:30 pm. The order entry session will close randomly at any point between 3:28 pm and 3:30 pm, after which the auction process will determine the final closing price. The framework will initially apply only to securities in the cash segment that have derivative contracts available, with any future expansion subject to SEBI guidance.
Under the revised structure, reference prices and price bands will be computed separately for the equity and equity derivatives segments. The price band for stock futures will be set at ±3% of the reference price, which will be calculated based on the VWAP of trades between 3:00 pm and 3:15 pm. In the absence of trades, alternative mechanisms including last traded price or theoretical pricing will be used, according to the NSE. The exchange also stated that outstanding orders outside the revised price band will be automatically cancelled, while unexecuted special orders, including stop-loss and disclosed quantity orders, will also be removed with appropriate messaging. During the transition period from CTS to CAS, order entry will not be allowed, and any orders placed will be rejected. However, limit orders can be modified or cancelled between 3:25 pm and the random closure of the auction session. For securities removed from F&O eligibility, the closing price will revert to the existing VWAP methodology using trades from the last 30 minutes of trading, provided the security continues to be part of the derivatives segment on at least one exchange.
The National Stock Exchange (NSE) and BSE are scheduled to remain closed for nine days in June 2026, including regular weekend closures. According to the latest holiday calendar, trading will remain suspended on June 26 on account of Muharram for both exchanges. The market will function normally on all other weekdays during the month, with both exchanges closed every Saturday and Sunday as usual.
On market holidays, there will be no trading activity across all segments, including equity derivatives, currency derivatives, securities lending and borrowing (SLB), and electronic gold receipts (EGR). As reported by the NSE, this suspension applies to all trading activities during the specified holiday periods. In May 2026, the NSE and BSE observed market holidays on May 1 for Maharashtra Day and May 28 for Bakri Eid, along with regular weekend closures.
Overall, Indian stock exchanges are scheduled to observe 15 weekday holidays in 2026 when markets remain closed. After the June 26 holiday, markets will remain closed on several occasions later in the year due to national and religious festivals. These include September 14 for Ganesh Chaturthi (Monday), October 2 for Mahatma Gandhi Jayanti (Friday), October 20 for Dussehra (Tuesday), November 10 for Diwali-Balipratipada (Tuesday), November 24 for Prakash Gurpurb Sri Guru Nanak Dev (Tuesday), and December 25 for Christmas (Friday).
Although Diwali Laxmi Pujan is falling on a Sunday this year, both NSE and BSE will conduct a special Muhurat Trading session on November 8 to mark the traditional beginning of a new financial cycle for many investors. As reported by the exchanges, timings for the Muhurat trading session will be announced separately by the BSE and the NSE in the days leading up to the festival. The Muhurat trading session will be conducted on Sunday, November 8, 2026 for Diwali Laxmi Pujan.
