Stock Market Holidays 2024 (2024)

Stock exchanges across the world remain closed on specific days. During this period, investors and traders cannot engage in trading activities. Stock market holidays represent major national and regional festivals, such as Diwali, Holi, or Good Friday. For market participants, tracking these holidays is crucial as these periods often coincide with increased consumer spending and overall economic optimism.

Let us look at the stock market holidays in 2024, understand the holiday effect, and learn how to better prepare for market closures.

What do you mean by stock market holidays?

Stock market holidays are days when financial markets are closed for trading activities. Effectively, this means you cannot buy or sell securities during these days. In India, the scheduling of stock market holidays revolves around:

• National holidays
• Regional holidays
• Cultural events
• Global events
• Any other event of extraordinary nature

Stock market holidays in 2024

A total of 21 (5 holidays falling on Saturday/Sunday) holidays have already been announced by the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). Both the exchanges observe these holidays and apply the suspension to:

• Equity or share trading
• Equity derivative, and
• SLB segments (Securities, Lending, and Borrowing

List of stock market holidays in 2024

The Muhurat trading

For the uninitiated, ‘Muhurat trading’ is a special one-hour trading session. It is conducted by the BSE and NSE on the occasion of Diwali. This session marks the beginning of the Hindu New Year, known as Samvat.

In 2024, Muhurat trading will take place on Friday, November 1, 2024. The timings for Muhurat trading will be announced by the exchange in due course.

List of stock market holidays falling on Saturday/Sunday

In addition to the above list, the following stock market holidays will fall on Saturday or Sunday in 2024:

What is the trading schedule of NSE?

On weekdays, the share market timing of NSE is between 9:15 AM and 3:30 PM. There is a pre-open session from 9:00 AM to 9:15 AM. Furthermore, there are also two block deal sessions:

• Session I from 8:45 AM to 9:00 AM
  and
• Session II from 2:05 PM to 2:20 PM

What is the ‘holiday effect?’

The ‘holiday effect’ is also known as the ‘holiday rally.’ This term highlights a situation where stock prices surge and experience a positive trend or rally during the period surrounding certain holidays. For example,

• Ahead of Diwali and Dussehra, several investors engage in buying activity
• They prefer investing in stocks as a means of seeking blessings or prosperity
• This preference increases demand for stocks and pushes the prices higher

However, traders must note that the holiday effect is not a guaranteed phenomenon. Indeed, it has been observed in the historical data, but its market behaviour can vary from year to year. Thus, traders must effectively plan around stock market holidays and adjust their positions accordingly.

How to plan around stock market holidays?

Let us have a look at some popular actions that you can consider while preparing for market closures:

Review holiday calendars

• Stay informed about upcoming stock market holidays
• Regularly check holiday calendars provided by stock exchanges or financial news outlets

Adjust trading schedule

• Plan your trading activities around market holidays
• Avoid scheduling trades on days when the market is closed
• Consider adjusting your trading schedule to accommodate:
  • Shortened trading weeks
    or
  • Extended holiday weekends

Manage positions ahead of holidays

• Take proactive steps to manage your investment positions before the stock market holidays
• Evaluate your portfolio holdings
• Consider making any necessary adjustments
• Try to rebalance your portfolio ahead of time

Set stop-loss orders

• Implement stop-loss orders or other risk management strategies
• This will help you protect your investment positions in case of unexpected market movements before or after holiday periods
• Setting predefined exit points also limits potential losses

Does volatility increase around holiday periods?

Yes, during holiday periods, increased volatility and reduced liquidity are commonly observed. Both these situations are adverse and can have significant implications for investors and traders. Let us understand this in detail:

Conclusion

Stock market holidays represent the period of suspension during which trading of financial securities is not allowed. In 2024, the NSE and BSE have listed 21 holidays (out of which five fall on Saturday/Sunday). Traders must remain cautious around the holidays as this period is often marked with increased volatility and reduced trading volumes. By regularly tracking the list of stock market holidays and appropriately adjusting positions, traders can better prepare for market closures and enhance their portfolio returns.

Do you wish to expand your market knowledge? Learn what is IOC and ITP in the share market.