Indicative Price

An indicative price is a non-binding price signal provided by a market participant — typically a broker, dealer, or exchange — indicating an approximate level at which they may be willing to buy or sell a security, without constituting a firm commitment to execute at that price. Indicative prices differ from firm quotes — where the dealer commits to transact at the stated price for a specified quantity. In Indian equity markets, indicative prices appear during the pre-open session (9:00 AM to 9:15 AM on NSE and BSE) where the exchange displays an indicative equilibrium price based on orders accumulated during the call auction — this becomes the opening price once the regular session begins. In fixed income and OTC derivatives markets, dealers provide indicative prices to clients to signal general market levels before committing to a binding firm quote. For IPOs in the book-building process, an indicative price range is communicated through the price band before the final issue price is determined based on aggregate demand.