Stock Market Holidays in India: Why Markets Stay Closed

You can always check the official holiday list on the National Stock Exchange (NSE) website, which publishes the updated trading holiday calendar every year.

Red sign showing stock market closed for a holiday, Stock Market Holidays

If you are new to investing, you may be surprised to learn that the stock market does not operate every day and there are also holidays.
There are specific days when markets remain completely closed, even though banks or offices may be open.

In this article, you’ll understand what stock market holidays are, why markets close on those days, and how beginners should plan around them—in simple language.

go to the NSE website for

What Are Stock Market Holidays?

Stock market holidays are days when stock exchanges remain closed and no trading takes place.

On these days:

  • You cannot buy or sell shares
  • Prices do not change
  • Orders placed are not executed

In India, stock market holidays apply to major exchanges like:

  • National Stock Exchange of India
  • Bombay Stock Exchange

Both exchanges usually follow the same holiday calendar.

Why Do Stock Markets Have Holidays?

Stock markets have holidays for several important reasons.

1️⃣ National and Public Holidays

Markets close on important national holidays such as:

  • Republic Day
  • Independence Day
  • Gandhi Jayanti

These days are significant for the country, and financial markets remain shut.

2️⃣ Religious and Cultural Festivals

India has diverse religious and cultural celebrations.

Markets may close on festivals like:

  • Diwali
  • Holi
  • Eid
  • Dussehra

This ensures fair participation when a large number of people may not be active.

3️⃣ Operational and Settlement Reasons

Stock markets involve:

  • Banks
  • Clearing corporations
  • Depositories

All these systems need to work together.
Holidays ensure smooth coordination and accurate settlement of trades.

What Happens If You Place an Order on a Holiday?

This is a common beginner question.

If you place an order on a market holiday:

  • The order is queued
  • It does not execute immediately
  • It executes only when the market opens next working day

The execution price will depend on:

  • Market conditions at opening
  • Demand and supply

So, price certainty is not guaranteed.

Do Stock Market Holidays Affect Long-Term Investors?

Not really.

Long-term investors:

  • Invest with a horizon of years
  • Are not affected by one or two closed days
  • Focus on business growth, not daily prices

Market holidays mostly matter to:

  • Traders
  • Short-term investors

For long-term investors, holidays are simply pause days.

Are There Different Holidays for Equity and Other Segments?

Sometimes, yes.

Markets have different segments such as:

  • Equity (shares)
  • Derivatives
  • Currency
  • Commodities

On certain days:

  • Equity market may be closed
  • Other segments may be open

Beginners usually focus on equity markets, where holidays are clearly announced in advance.

Special Trading Sessions (Muhurat Trading)

One unique feature in India is Muhurat Trading.

Illustration of a diya lamp representing Muhurat Trading during Diwali in the Indian stock market

On Diwali:

  • Markets open for a short, special session
  • Considered auspicious by many investors

Muhurat trading is symbolic and optional.
It does not change long-term investing outcomes.

Beginners should not feel pressure to trade during this session.

Where Can You Check Stock Market Holidays?

Stock market holidays are announced well in advance.

You can check the official holiday list on the National Stock Exchange (NSE) website, which publishes the updated trading holiday calendar every year.

  • Official exchange websites
  • Your broker’s app or website
  • Financial news portals

Always verify holidays before planning trades or investments.

Common Beginner Myths About Market Holidays

Myth 1: Markets close randomly

Truth: All holidays are pre-announced.

Myth 2: Prices change on holidays

Truth: No trading means no price movement.

Myth 3: Holidays cause losses

Truth: Holidays simply pause trading; they don’t create gains or losses.

How Beginners Should Plan Around Market Holidays

A simple approach:

  • Be aware of holiday dates
  • Avoid urgent trading around holidays
  • Use holidays to learn and review
  • Focus on long-term goals

Markets will reopen.
Opportunities don’t disappear because of a holiday.

Market Holidays vs Bank Holidays

Another common confusion.

  • Bank holidays may not always be market holidays
  • Market holidays always mean no trading

Never assume market status based only on bank holidays—always check the exchange calendar.

Final Thoughts

Stock market holidays are a normal and necessary part of the investing system.

They:

  • Ensure smooth operations
  • Respect national and cultural events
  • Protect fairness in trading

Once you know when markets are closed, you can plan calmly and avoid unnecessary confusion.

What to Read Next

👉 How Do You Make Money from Stocks?

🔑 Key Takeaway

Stock market holidays mean no trading and no price movement.
Orders placed are executed on the next trading day.
Long-term investors are largely unaffected by market holidays