The National Stock Exchange of India (NSE) , established in 1994, is one of the largest stock exchanges globally. Based in Mumbai, the NSE operates under the ownership of several financial institutions, including banks and insurance companies. It serves as a vital platform for Indian financial markets and facilitates trading in various financial instruments such as equities, derivatives, bonds, and currencies.

The National Stock Exchange of India (NSE) conducts various trading sessions. The Regular trading session occurs from 9:15 AM to 3:30 PM, enabling normal or limited physical market trading. Additionally, there are Block Deal Sessions: a Morning Window from 8:45 AM to 9:00 AM and an Afternoon Window from 2:05 PM to 2:20 PM, especially for executing large block deals.

The National Stock Exchange of India (NSE) is operational on all weekdays except specific trading holidays. Every year, the NSE issues a list of holidays in the share market for that specific year. These holidays comprise weekends, national holidays, as well as various festivals and special occasions. As such, traders and investors should stay informed about the list of stock market holidays 2024. This would help them to plan their trading activities effectively, thus reducing the risk of losses.

Similar to the National Stock Exchange (NSE), the Bombay Stock Exchange (BSE) is another major stock exchange in India. The BSE is the oldest stock exchange in the continent of Asia and the third-largest stock exchange in the world. It lists more than 6,000 companies, making it one of the most comprehensive exchanges globally.

Overview of Share Market Holidays in 2024

The National Stock Exchange of India (NSE) remains shut on stock exchange holidays and no trading takes place. However, on certain special occasions like Diwali, although it's a trading holiday, the stock market operates for specific auspicious hours known as Muhurat trading. During this time, investors participate in symbolic trading to mark the occasion. Moreover, the NSE issues separate lists for different financial segments in order to ensure clarity and organization for traders and investors.

List of Holiday in Stock Market 2024

The list of holidays in share market issued by National Stock Exchange for the year 2024 is as follows :

The stock market holidays 2024 which fall on weekdays :

1. January 22, 2024 (Monday) - Special Holiday

2. January 26, 2024 (Friday) - Republic Day

3. March 8, 2024 (Friday) - Mahashivratri

4. March 25, 2024 (Monday) - Holi

5. March 29, 2024 (Friday) - Good Friday

6. April 11, 2024 (Thursday) - Eid-Ul-Fitr (Ramadan Eid)

7. April 17, 2024 (Wednesday) - Shri Ram Navmi

8. May 1, 2024 (Wednesday) - Maharashtra Day

9. May 20, 2024 (Monday) - General Parliamentary Elections

10. June 17, 2024 (Monday) - Bakra Eid

11. July 17, 2024 (Wednesday) - Muharram

12. August 15, 2024 (Thursday) - Independence Day

13. October 2, 2024 (Wednesday) - Mahatma Gandhi Jayanti

14. November 1, 2024 (Friday) - Diwali Laxmi Pujan ( Muhurat trading )

15. November 15, 2024 (Friday) - Gurunanak Jayanti

16. December 25, 2024 (Wednesday) - Christmas

The stock market holidays 2024 which fall on Saturday/Sunday:

1. April 14, 2024 (Sunday) - Dr. Baba Saheb Ambedkar Jayanti

2. April 21, 2024 (Sunday) - Shri Mahavir Jayanti

3. September 7, 2024 (Saturday) - Ganesh Chaturthi

4. October 12, 2024 (Saturday) - Dussehra

5. November 2, 2024 (Saturday) - Diwali-Balipratipada

The list of holidays in share market issued by Bombay Stock Exchange (BSE) for the year 2024 is as follows :

1. January 26, 2024 (Friday) - Republic Day

2. March 08, 2024 (Friday) - Mahashivratri

3. March 25, 2024 (Monday) - Holi

4. March 29, 2024 (Friday) - Good Friday

5. April 11, 2024 (Thursday) - Eid-Ul-Fitr (Ramzan Id)

6. April 17, 2024 (Wednesday) - Ram Navami

7. May 01, 2024 (Wednesday) - Maharashtra Day

8. May 20, 2024 (Monday) - General Elections (Lok Sabha)

9. June 17, 2024 (Monday) - Bakra Eid

10. July 17, 2024 (Wednesday) - Muharram

11. August 15, 2024 (Thursday) - Independence Day

12. October 02, 2024 (Wednesday) - Mahatma Gandhi Jayanti

13. November 01, 2024 (Friday) - Diwali * Laxmi Pujan

14. November 15, 2024 (Friday) - Guru Nanak Jayanti

15. December 25, 2024 (Wednesday) - Christmas

How Share Market Holidays Affect Trading

Share market holidays can have a significant influence on trading activities and market behavior. Understanding how these holidays affect trading is crucial for traders, as they can lead to changes in liquidity, volatility, and overall market sentiment.

Price Gaps

Trading activities are suspended on share exchange holidays. This can often result in price gaps between the closing price and the opening price before and after the holiday respectively. These gaps can be significant, especially if there are major news events or developments over the holiday period. Moreover, the "holiday effect" is a commonly observed phenomenon where stock markets tend to see gains on the final trading day before a long weekend or holiday.

Liquidity

During trading holidays, trading volume decreases as many traders and individuals are inactive. With fewer buyers and sellers in the market, the liquidity of shares decreases and it becomes harder to conduct trades at desired prices.

Volatility

There is a significant decrease in trading volume during holidays. With fewer trades being executed, even small buy or sell orders can have a larger impact on stock prices, leading to more price fluctuations and higher volatility.

Market Sentiment

Share market holidays can influence investor sentiment, leading to shifts in market mood and perception. Positive or negative news events surrounding holidays can impact investor confidence and affect trading behavior when the market reopens.

Tips for Trading Around Market Holidays

Plan Ahead

Traders should prepare for upcoming share market holidays in advance in order to minimize risks and losses. They should be aware and informed about the list of holidays in the share market issued by the NSE on their website. Further, researching and analysing the potential impact on market volatility and liquidity can help traders make informed decisions and adjust trading strategies accordingly.

Utilize Limit Orders

Using limit orders can allow traders to specify the price at which they are willing to buy or sell. This strategy helps to avoid unfavorable prices during periods of volatility and prevents losses.

Avoid Overtrading

Given the reduced trading volume and the unpredictable market conditions during holiday periods, traders should avoid overtrading. They should adhere to the pre-planned trading plan and execute trades only when a clear strategy is in place.

Stay Informed About Market Hours

Traders should remain active and alert by regularly checking official announcements from the National Stock Exchange regarding any changes to trading schedules or special sessions. This helps avoid unexpected losses and disruptions.

Planning Your Investment Around Market Holidays

Diversify Your Portfolio

During holiday trading sessions, the share market can be more unpredictable. Diversifying portfolios across different asset classes and sectors can help mitigate risk and protect investments against market volatility.

Monitor Special Trading Sessions

Traders should look out for official announcements from stock exchanges regarding any changes to trading schedules or special trading sessions including special sessions such as Muhurat trading.

Focus on long term objectives

During holidays, short-term market fluctuations may occur. However, it's essential for traders to stay focused on their long-term investment objectives. They should avoid making impulsive decisions based on short-term market movements and price fluctuations.

Final Thoughts

When planning trading and investment activities around market holidays, traders must prepare in advance in order to mitigate risks and make informed decisions. By adjusting their trading strategies to the market conditions, traders can effectively tackle the challenges associated with volatility, liquidity, and price fluctuation during holidays. This approach can help them make effective use of the available opportunities while also minimizing potential losses.

Read these articles to learn about more about festive season & impact on stock markets:

1. Buying Stocks in October, November & December? Seasonal Patterns in Global & Indian Stock Markets

2. Festive Season Forecasts a Bright Spark for India's Economic Revival

3. The 'Holiday Effect' and Its Influence on Indian Investment Markets

Frequently Asked Questions

Do share market holidays affect trading decisions?

Market holidays can significantly impact trading decisions due to factors like reduced liquidity, increased volatility, changes in market sentiment, and potential price fluctuations. This increases the risk of losses, particularly if the traders are not prepared or if unexpected events occur during the holiday period.

How can I stay informed about unscheduled market closures?

To stay informed about unscheduled market closures, traders can check the NSE (National Stock Exchange) website for the NSE holiday list and any announcement related to it. The website provides real-time information about any unexpected closures or disruptions. Additionally, traders can also monitor financial news websites, trading platforms, and official regulatory sources for comprehensive coverage of market events.

Are there any trading benefits to knowing the market holidays in advance?

Knowing share market holidays 2024 in advance will allow traders to plan their trades in advance and adjust their trading strategies accordingly. This will help them avoid potential disruptions and to manage risk more effectively.

Is there a pattern in stock prices before and after holidays?

Globally there is a phenomenon known as the "holiday effect" observed around holidays. This concept refers to the observed tendency of stock markets to experience gains on the final trading day before a long weekend or holiday.