Introduction

trading holiday is when a financial market is open for trade, and the transactions are conducted. As most Indian stock exchanges follow a five-day weekly cycle, securities trading takes place only on weekdays.

The trading holiday is declared by SEBI and Govt. of India. This is one of the most important things to know about trading holidays in India. Do you know why trading holidays are declared?

What are Trading Holidays?

Trading holidays occur when the stock markets are closed on a particular day. A special holiday is a day on which no trading can occur on any market. The government usually declares these days to allow for public holidays in India or accommodate religious festivals.

These are the days when markets in India remain closed. There are certain other days when trading is not permitted due to the observance of specific religious festivals.

The stock market holidays in India are closing stock markets and other financial market facilities like banks on certain days. Trading holidays are declared by the Government of India or by individual stock exchanges to celebrate specific national or cultural festivals or events. In India, several holidays are declared by the government and the exchanges.

 

Trading Holidays List

Here is an overview of the trading holidays NSE and BSE 2022:

 

Month Date Day Event
January 26th Jan Wednesday Republic Day
March 01st Mar Tuesday Maha Shivratri
March 18th Mar Friday Holi
April 14th Apr Thursday Mahavir Jayanti
April 15th Apr Friday Good Friday
May 03rd May Tuesday Id-Ul-Fitr (Ramzan Id)
August 09th Aug Tuesday Muharram
August 15th Aug Monday Independence Day
August 31st Aug Wednesday Ganesh Chaturthi
October 5th Oct Wednesday Dussehra
October 24th Oct Monday Diwali Laxmi Puja
October 26th Oct Wednesday Diwali Balipratipada
November 8th Nov Tuesday Guru Nanak Jayanti

 

There is an inter-market holiday calendar that has been drawn up by most of the stock exchanges in India and is followed by most of them. Individual stock exchanges also use this inter-market calendar for determining their holidays.

 

What Is the Significance of Stock Market Holidays?

Besides any festival, there are many other occasions like elections that may result in short-term market movements during which trading may not take place on some or all exchanges. The stocks listed on stock exchanges always have a holiday on their listing anniversary day, whether listed or unlisted public company (ULP).

Though these days are observed as a holiday by Central Government offices, public sector companies, and factories, they may or may not be marked as a holiday by private companies, depending on the nature of business activities.

These trading holidays are announced each year by the Central Government based on the requests made by various trade associations and trade unions. The main aim behind declaring these trading holidays is to ensure the smooth functioning of industries, businesses, and other commercial activities.

Trading holidays are essential for investors because they allow them to book profits on their holdings without worrying about fluctuations in the market during specific periods. In addition, these periods provide investors with an opportunity to manage their cash flow better by avoiding unnecessary stock transactions during high-volume trading days.

 

Wrapping Up

Trading holidays are an essential part of the Indian Financial System. It is a day when all the financial markets will be closed, and no trading activities will occur.

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