What are Trading Holidays?

5paisa Research Team

Last Updated: 26 Apr, 2024 05:57 PM IST

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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 Share Market Holiday 2024: 

Month Date Day Event
January 22-Jan-2024 Monday Special Holiday
January 26-Jan-2024 Friday Republic Day
March 08-Mar-2024 Friday Mahashivratri
March 25-Mar-2024  Monday Holi
April 29-Mar-2024 Friday Good Friday
April 11-Apr-2024 Thursday Id-Ul-Fitr (Ramzan Id)
April     17-Apr-2024     Wednesday Ram Navami    
May    01-May-2024     Wednesday Maharashtra Day    
May    20-May-2024     Monday General Parliamentary Elections    
June    17-June-2024     Monday Bakri Eid    
July    17-Jul-2024     Wednesday Moharram
August   15-Aug-2024     Thursday Independence Day/Parsi New Year    
October  02-Oct-2024     Wednesday Mahatma Gandhi Jayanti    
November 01-Nov-2024     Friday Diwali Laxmi Pujan    
November 15-Nov-2024     Friday Gurunanak Jayanti    
December 25-Dec-2024     Wednesday Christmas    

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.

Disclaimer: Investment in securities market are subject to market risks, read all the related documents carefully before investing. For detailed disclaimer please Click here.

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