Stock Exchanges and Their Time Zones

 The modern world is characterized by cross-border capital flows, in the form of FDI and FII. Because the positive attitude of the various governments toward the foreign capital removed various obstacles and restrictions in the cross-border capital flows. In this context, understanding the relationship of various exchanges is very important. Factors such as the progressive removal of restrictions and relaxation of controls on capital movements have helped further towards this and have indirectly increased the flow of funds across countries.

Bombay Stock Exchange (BSE): Bombay Stock Exchange, commonly referred to as the BSE, is located on Dalal Street, Mumbai. It is the oldest stock exchange in Asia and it has 11th largest stock exchange in the world by market capitalisation. It is established in the year 1875 and SENSEX (also called "BSE 30") is the ideal and bench mark index of the stock exchange. New York Stock Exchange (NYSE): commonly referred to as the NYSE, is located at 11 Wall Street. It is by far the world's largest stock exchange by market capitalization of its listed companies.

Tokyo Stock exchange: The Tokyo Stock Exchange called or `TSE for short’, is located in Tokyo, Japan, established on May 15, 1878 and trading began on June 1, 1878. In 1943, the exchange was combined with ten other stock exchanges in major Japanese cities to form a single Japanese Stock Exchange. It is the second largest stock exchange in the world by aggregate market capitalization of US$4.5 trillion as of November 2013 and it has 2302 listed companies. Hong Kong Stock Exchange: The Hong Kong Stock Exchange (SEHK) is located at Hong Kong. It is Asia's 2nd largest stock exchange in terms of market capitalization. As on 30th November 2013, it has 1615 listed companies. London Stock exchange: The London SE located in the City of London in the United Kingdom. As of December 2011, the Exchange had a market capitalization of US$3.266 trillion (short scale), making it the fourth-largest stock exchange in the world by this measurement (and the largest in Europe). The Shanghai Stock Exchange (SSE) is a stock exchange that is based in the city of Shanghai, China. It is one of the two stock exchanges operating independently in the People's Republic of China; the other is the Shenzhen Stock Exchange. Shanghai Stock Exchange is the world's 6th largest stock market by market capitalization at US$2.3 trillion as of Dec 2011. Australian securities exchange: The Australian Securities Exchange (ASX) is Australia's primary securities exchange. It was created by the merger of the Australian Stock Exchange and the Sydney Futures Exchange in July 2006. Today; ASX has an average daily turnover of $4.685 billion and a market capitalization of around AU$1.4 trillion, making it one of the world's top-10 listed exchange groups, comparable to the New York Stock Exchange, London Stock Exchange and Deutsche Bourse

These all markets have a cyclical relationship, above chart shows different market operation times starting from Tokyo stock market (Japan) and ending with ASX (Australia).

Mr. Suhaib. P

Assistant Professor of Commerce, Al Shifa College of Arts and Science,

 Kizhattoor, Perinthalmanna