Market Trading Hours of the Major Stock Exchanges - Global Equity Market
Market Trading Hours of the Major Stock Exchanges - Global Equity Market
Looking at the Global Stock Market Participation as per the FY 2022-23 Data, more than 55 Percent of the Total population in US invests directly in the Equity Market. This is about 33 Percent in the United Kingdom, 13 Percent in China and around 2 Percent in Brazil.
In India, the contribution is around 3 Percent of the Total population, at the same time when looking at households, it is about 17 Percent participation in the Indian Equity Market. While there are many reasons for the low penetration(Participation) in the Stock Market in India, the most common and widely cited factor by the common public, it's Market Trading Hours.
Generally, the Market Trading hours in India would starts from 09:15 AM and ended at 03:30 PM during Monday to Friday(Week Days). Most of the people on this duration and days were engaged with their Corporate Job or Regular Profession. As the common public thinking that, it is attributed to the decline in Market Participation.
So, how has the Contribution of US, UK and China which is next to India were grown this amount and what about the trading hours there ?
In General, the contribution of Institutional Investors in the US is higher in the Stock Market. The US Economy is not only a Developed nation, but also a Developed and Well Experienced in the Equity Market. Due to this, the contribution of Market participants are higher than any other nation, which is mostly coming through Direct Individual Investors, Portfolio Management Services, Hedge Funds and Index Funds, ETF(Exchange Traded Fund).
For India, the PMS(Portfolio Management Services) and Index Funds are still looking as a new. The Market Participation in the Indian Equity Market has been increasing Since Covid-19. For China, there is not much connection between it's real economy and the Stock Market.
Although the Chinese Equity market is more valuable than the Indian Stock Market(Based on Market Cap and Penetration), it is mostly under the Govt Control and it's Policies. There is a Market allocation mechanism which is available in the Indian Equity Market as compared to the Chinese Market, it looks better.
There are few common reasons for the low penetration in the Indian Stock Market are Over Dependency on Traditional Investments like Real Estate, Gold and Bank Deposits, Impatience and get rich quick mentality in the Stock Market, Financial illiteracy, Panic about the Stock Market Volatility and keeping them as safe(Not beating Inflation).
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