Markets & Strategy

The Market Now Has 4 Closing Times

New stock market timings took effect on 3 August 2026. F&O stocks stop trading at 3:15 PM, an auction sets their closing price by 3:35 PM, and Nifty futures and options run until 3:40 PM. What it was, what it is now, and what to keep in mind.

SEBI RA · INH000016630 3 August 2026

Until Friday the market had a single closing bell. At 3:30 PM everything stopped.

From today it stops 4 times, depending on what you hold. This is the Closing Auction Session, or CAS, introduced by SEBI in a circular dated 16 January 2026 and live from 3 August 2026.

Shares are now split into 2 groups.

Group 1 is every stock that has futures and options contracts on it, which includes all of the Nifty 50.

Group 2 is every other listed stock, and nothing there changed.

The new market timings

Market timings before and after 3 August 2026
SegmentWasNow
F&O stocks, continuous trading ends3:30 PM3:15 PM
F&O stocks, closing price set3:30 PM3:35 PM
All other stocks3:30 PM3:30 PM, no change
Index and stock futures and options3:30 PM3:40 PM
Derivatives closing price window3:00 to 3:30 PM3:10 to 3:40 PM
Post close session3:40 to 4:00 PM3:50 to 4:00 PM

Source: SEBI Circular SEBI/HO/47/11/11(3)2025-MRD-POD2/I/2765/2026 dated 16 January 2026; NSE circulars NSE/CMTR/73362 dated 18 March 2026, NSE/CMTR/74466 and NSE/FAOP/74467 both dated 29 May 2026; and the NSE Clearing settlement price SOP, NCL/CMPT/73370 dated 19 March 2026.

That leaves a 25 minute gap. From 3:15 PM to 3:40 PM, index futures and options keep trading while the shares underneath them do not.

How the closing price is now set

For those stocks the closing price now comes out of a single auction, in place of the old half hour average.

In plain terms

Until Friday, the closing price was the VWAP (volume weighted average price) of every trade between 3:00 PM and 3:30 PM. From today it is the single price at which the largest quantity of buy and sell orders can be matched in the auction.

The closing auction session, step by step
TimeWhat happens
3:15 to 3:20Trading stops. No orders accepted. The exchange sets a reference price from the VWAP of 3:00 to 3:15.
3:20 to 3:25Order entry opens. Market and limit orders both allowed, and can still be changed.
3:25 to 3:30Limit orders only. Market orders can no longer be modified or cancelled. The window shuts at a random moment between 3:28 and 3:30.
3:30 to 3:35All orders matched at a single price, the level where the largest quantity can trade. That price is the official close.

The random shut between 3:28 and 3:30 is deliberate. If the exact closing second were known in advance, the last order in would carry an advantage.

If the auction finds no price at all, the close falls back to the 3:00 to 3:15 VWAP.

SEBI made the change because the old closing price rested on whatever happened to trade in a single half hour.

Index funds and ETFs must transact at the closing price on rebalancing days, and those orders are large and predictable.

An auction gathers all the demand and all the supply and clears it at a single level instead.

What changes for your stock orders

Cash market, F&O stocks only
WhatWasNow
Last time to place a normal order3:30 PM3:15 PM
Pending stop loss ordersLive till 3:30 PMCancelled at 3:15 PM
Intraday auto square offAround 3:20 PMAround 3:05 to 3:10 PM
Buying or selling at the closeTrade any time till 3:30 PMOrder into the 3:20 to 3:30 window
Watching the price formLive till 3:30 PMNo live price 3:15 to 3:35 PM

Note: auto square off is a broker setting, not an exchange rule, so the exact minute differs. Confirm yours.

The exchange cancels pending stop loss orders, iceberg orders and orders outside the price band at 3:15 PM.

They do not carry into the auction.

So a stop loss in the cash market on those names protects you only until 3:15 PM.

If you invest rather than trade, this is the whole story. Place your orders during the normal day, before 3:15 PM. Nothing else changes.

What changes for Nifty futures and options

Our overlay positions sit in Nifty index options.

Index and stock derivatives
WhatWasNow
Trading closes3:30 PM3:40 PM
Closing price methodVWAP of the last half hourUnchanged
That half hour is3:00 to 3:30 PM3:10 to 3:40 PM
Index value, 3:15 to 3:35 PM1 live index2 values published side by side
Stock futures price band, 3:15 to 3:40 PMNormal bandsReset to +/- 3%
Options price bandsNormalUnchanged all day
Expiry settlement, index contractsThe index close priceThe index close price, now built from auction prices
Intraday auto square offAround 3:20 PMAround 3:25 to 3:30 PM

Your order window is 10 minutes longer. Nifty futures and options now trade until 3:40 PM. The way a contract's daily closing price is worked out has not changed, but the half hour it averages has moved to 3:10 to 3:40 PM.

There are now 2 index values on screen during the auction. The exchange publishes the actual index, which for auction stocks holds their last traded price from before 3:15, and alongside it an indicative closing index built from the auction's equilibrium prices.

The indicative one is the number that tells you where the index is heading into the close. Neither is a traded price, so do not size an order against either.

Expiry day settlement traces back to the auction. NSE Clearing settles an expiring index contract at the closing value of the index, and that rule has not changed.

What changed is the input. The closing price of every F&O stock in the index is now the auction equilibrium price rather than a half hour average, and the index close is built from those.

For a single stock contract the link is direct. Its final settlement price is that stock's own closing price on expiry day, which is now the auction price.

If you hold stock futures, watch 3:15 PM. The price band on stock futures is reset to plus or minus 3% for the 3:15 to 3:40 window, and the exchange cancels outstanding orders that fall outside the revised band. Options price bands are untouched.

None of this changes how you act on our monthly overlay recommendations. We publish them for execution at the open, not into the close.

What to keep in mind

  1. Place cash market orders in F&O stocks before 3:15 PM. That is now the real end of the day for those names.
  2. Do not rely on a cash market stop loss into the close on those stocks. It is cancelled at 3:15 PM.
  3. Check your broker's square off timings. Cash moved earlier, derivatives moved later.
  4. Between 3:15 PM and 3:35 PM read the indicative closing index, not the frozen live one, and treat neither as a traded price.
  5. If you invest monthly and hold, change nothing.

From 7 September 2026 the morning pre open session changes as well.

The auction is a better way to set a closing price.

It is harder to influence, it gathers real size at a single level, and it matches how London, Frankfurt and New York already close.

The cost is 15 minutes less trading in the most liquid stocks in the country, and a closing price you can no longer watch being made.

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