Share Market Holidays in 2024

Indian financial markets operate within a structured framework and are closely governed by the Securities and Exchange Board of India (SEBI). Whether you are a trader or a long-term investor, understanding the implications of the various rules and regulations within which the markets operate is crucial. 

If you are planning to participate in the Indian financial markets, one of the first things you must do is make yourself aware of the stock market holidays. This is because all trades on these specified holidays will be suspended and knowing these dates beforehand can let you plan your trading and investing decisions better. 

In this article, we are going to explore the various stock market holidays in 2024 and also delve into the importance of knowing when the trading holidays are.  

Stock Market Holidays in 2024 

The following table is designed to give you an overview of all of the trading holidays during 2024 as declared by the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).  

Note: Although trading will be suspended on Diwali Laxmi Pujan (01.11.2024), both stock exchanges - NSE and BSE - will conduct a special one-hour trading session termed the Muhurat Trading Session. The timings for this special session will be intimated by the exchanges a few days before the event.   

Some trading holidays fall on weekends, i.e., on Saturdays and Sundays. Here is a list of those holidays. 

Why is it Important to Know Share Market Holidays? 

There are many reasons why you must know when share market holidays are. Let us look at some of them. 

• Lets You Plan and Prepare Better 

Being aware of stock market holidays enables you to plan your trading and investment activities more effectively. By knowing when the markets will be closed, you can avoid unnecessary trades and ensure that your orders are executed at the right time.

• For Risk Management

Share market holidays can impact liquidity and volatility in the market. Understanding when these holidays occur allows you to adjust your risk management strategies accordingly and reduce exposure to potential market disruptions.

• To Avoid Missed Opportunities

Not knowing when share market holidays are can lead to missing out on key trading days and in turn several missed profit-making opportunities. 

• To Gauge Market Sentiment

Extended stock market closures due to share market holidays can heavily influence investor sentiment and market dynamics. You can anticipate potential shifts in market sentiment and adjust your investment strategies accordingly by simply being aware of upcoming trading holidays.

Things to Keep in Mind When Trading Near Share Market Holidays

If you are planning to trade near share market holidays, there are a few things you need to consider. Here is a quick overview of some crucial aspects. 

• Increased Overnight Risk 

Overnight risk is the risk of your position or investment losing value due to holding it overnight. When stock market holidays occur near the weekend, overnight risk increases significantly. Therefore, you must ensure you adjust your risk exposure or implement hedging strategies to mitigate any adverse effects due to extended trading holidays. 

• Alternative Markets

Instead of trading near stock market holidays, consider exploring alternative investment options such as commodities and currencies. These markets may continue to remain open during certain share market holidays and may even experience a spike in liquidity and volatility due to the influx of more traders shifting from the equity segment.  

Conclusion

With this, you must now be aware of the stock market holidays for 2024. Trading holidays can have a significant impact on trading activity, market dynamics and investor behaviour. For example, reduced liquidity during market holidays can amplify price movements and increase volatility when trading resumes. 

Traders and investors may rush to enter or exit positions once the market reopens after holidays, leading to sharp price swings. It is crucial to be aware of and plan for such reactions, which is possible only if you are aware of the holidays.

Although important, knowing the various share market holidays may not always be enough. Whether you are a trader or an investor, keeping track of the news and announcements related to the companies you are interested in is also equally crucial. Here is where the Research 360 platform from Motilal Oswal can help. 

The platform’s dedicated news and announcements section provides all the information you need on macro and microeconomic factors, specific stocks, IPOs and quarterly results. You can use the insights you gain to plan your trading and investment activities. 

Furthermore, when you sign up for Research 360, you also get access to a host of other features, such as stock screeners, futures and options analysis tools, research reports and stock ideas, among others. So, sign up for the Research 360 platform by Motilal Oswal today and get ahead in your investment journey.