Special trading session: The National Stock Exchange as well as the Bombay Stock Exchange held a special live trading session in the equity and futures & options segments, on Saturday, March 2,  to check the preparedness of the disaster recovery system of the market in case of an emergency. Both Sensex and Nifty hit record highs in Saturday's session amid investor enthusiasm following strong Gross Domestic Product (GDP) data.

The blue-chip NSE Nifty 50 and the broader BSE Sensex closed 0.18 per cent and 0.08 per cent higher, respectively, during the special trading session on Saturday. Why did the market regulator call for a special trading session? Republic Business takes a deep dive. 

Special trading session 

In an exclusive interview with Republic Business, Past President of the Association of National Exchanges Members of India, Vijay Bhushan said the special trading session held to check the preparedness of the disaster recovery system of the market in case of an emergency, was a welcome move.

“Today is Saturday when we normally do not have any trading. However, for disaster recovery, there were two sessions, one from Mumbai like every day and the second from the disaster recovery site,” said Bhushan. Explaining the special trading hours, Bhushan said the time period of 9.15 am to 10 am witnessed normal trading, and from the disaster recovery site from 11.30 am to 12.30 pm. 

“The good thing is that in both these sessions, the trading has gone on well and therefore the disaster recovery site is functioning properly. Next is both BSE Sensex and Nifty 50 have risen close to 15 per cent in the last six months,” said the market observer. 

Market cap, Sensex milestones 

When asked that in view of both BSE Sensex and Nifty 50 have rising close to 15 per cent in the last six months, was there a possibility that the combined market cap would cross $5 trillion, Bhushan said, “I am expecting that it's very probable that we will hit the $5 trillion mark for market capitalization by April 15 this year.”  

On being asked when will Sensex breach the multi-anticipated 1 lakh mark, Bhushan said, “Well, that is far more speculative than this, but I think we are still about three years away from Sensex hitting the 1 lakh mark,”

Whether NSC's move to extend trading hours will impact the stock market and the brokers associated with it, Bhushan said,” My personal view is that the market hours should not be extended till we are fully prepared in terms of the reports. There are further changes planned, which is from T plus one to T plus zero,” 

“The software to handle that, both at the end of the exchanges and every exchange of the brokers, you know software changes take time and Therefore let us first make our system foolproof,” said Bhushan.  

With the changes in timing and the changes in settlement cycle and because after t plus 0 there is also. We will also move to instant payment and delivery, let us first be confident about that, and then let us look at extending the trading hours, said Bhushan.  

“As far as the brokers are concerned, the majority of the brokers, I'm talking a majority, feel that the time is not right to extend the timing of the exchange,” said the market watcher.