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Market Basics & Instruments

Closing Price

The official end-of-day price of a security, computed in India as the volume-weighted average price of trades in the last thirty minutes.

Formula Closing Price = VWAP of all trades between 15:00 and 15:30
Unit

In depth

The Indian closing price is deliberately not the last trade — it is a volume-weighted average across the final half hour, which makes it far harder to manipulate with a single small trade at 15:29:59. This is the price used for index calculation, mutual fund NAVs, margin computation and derivatives settlement, so it has real consequences beyond display. It can therefore differ from the last traded price you saw at the bell, sometimes noticeably in thin stocks. Anyone reconciling a portfolio statement against a screenshot of the LTP will find the mismatch here.

Worked example

In the last thirty minutes a stock trades 1,000 shares at ₹300 and 3,000 shares at ₹310. Closing price = (1,000 x 300 + 3,000 x 310) / 4,000 = (3,00,000 + 9,30,000) / 4,000 = ₹307.50, even if the final trade printed at ₹312.

Illustrative figures, chosen so the arithmetic is easy to follow. Not a live price and not a valuation of any company.

Educational reference only

This entry explains what “Closing Price” means. It is not investment advice and not a recommendation to buy or sell any security. Any numbers above are illustrative, not live prices, and nothing here predicts price direction or rates a stock. Consider your own circumstances and consult a SEBI-registered investment adviser before acting.