Given the nature of the world economy and the underlying conditions after the pandemic, there are enough reasons to invest in markets outside of India. As a pureplay investor in the Indian stock markets, your portfolio may be exposed to domestic macroeconomic and geopolitical investment risks, despite having a hybrid investment basket. Well-diversified portfolios are good for reducing risk, and investing in markets across the globe is a sound strategy in this regard.
Recently, Indian investors seem to be focused on investing in U.S stocks more and more. The U.S stock market is one of the largest, with easy access to globetrotting investors. One of the wonders of the stock market is how it includes everyone. U.S stocks can offer attractive returns to investors globally, and Indian investors also have the chance to own a share of big-name U.S companies.
While there are many exchanges in the U.S, the two largest ones are:
• New York Stock Exchange (NYSE):
The NYSE is the world’s largest stock exchange by market cap, and the United States’ oldest and most influential securities exchange, in addition to being a famous symbol of Wall Street. The NYSE started out as a modest operation under a buttonwood tree in Manhattan and is now known worldwide as a symbol of Wall Street. The NYSE still lists the world’s most prominent American corporations, which are still considered to be the premier venue for stock trading.
• NASDAQ (National Association of Securities Dealers Automated Quotations):
An electronic stock exchange, Nasdaq is the world’s first online marketplace for trading and buying securities. It operates 29 exchanges and five central security depositories in the United States and Europe. any of the world’s leading technology companies are listed on Nasdaq.
U.S Stock market trading hours
U.S Stock market trading hours can be broadly classified into Pre-market trading hours, Normal trading hours, and after-hours trading. Each segment works in different trading schedules and has different objectives.
After-hours trading and Pre-market trading are usually referred to as Extended-hours trading.
NYSE and NASDAQ trading hours depend on a few variables, such as:
• Eastern Standard Time (EST):
Eastern Standard Time is a time zone in the Eastern United States. It is 5 hours behind Coordinated Universal Time (UTC−05:00). Indian Standard Time (IST) is 9 hours and 30 minutes ahead of Eastern Standard Time.
• Eastern Daylight Time (EDT):
During the summer and spring seasons, Eastern Daylight Time is in effect. It is four hours behind Coordinated Universal Time (UTC−04:00). Indian Standard Time (IST) is 10 hours and 30 minutes ahead of Eastern Daylight Time.
• Eastern Time (ET):
The time zone on the east coast is called Eastern Time (ET). Eastern Time is not static but switches between EDT and EST.
Below are the market hours for NYSE and NASDAQ, as per ET & IST
|Market Hours for NYSE & NASDAQ||ET||IST|
|Pre-market trading hours||4:00 AM to 9:30 AM||1:30 PM to 7:00 PM|
|Normal trading hours||9:30 AM to 4:00 PM||7:00 PM to 1:30 AM|
|After-hours trading||4:00 PM to 8:00 PM||1:30 AM to 5:30 AM|
The U.S stock market operates from Monday to Friday, excepting Holidays.
Points to be remembered about U.S stock market timings
- • In the U.S, there is a standard workday schedule for trading. Almost all of the stock exchanges, like the New York Stock Exchange (NYSE) and Nasdaq, are open from 9:30 AM to 4:00 PM ET. The exchanges are closed on weekends and holidays.
- • As an investor based in India, it’s important to note the time difference between U.S and IST (Indian Standard Time).
- • You should also consider Daylight Saving time which applies twice a year and also impacts the timings.
The U.S stock market is one of the top places to invest if you’re looking for global diversity. The country is home to some of the most successful and innovative companies in the world, including technology giants and industrial firms. Hence, as you decide to invest, remember to take note of the basic operational details, such as market hours.