Diwali, the festival of lights, is a significant time in India, and its impact extends to the financial markets. In 2025, Diwali falls around October 20 and 21, prompting questions about the operational status of the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). Here's a breakdown of what traders and investors need to know.
Market Closure and Muhurat Trading
The NSE and BSE will be closed on Tuesday, October 21, 2025, for Diwali Laxmi Pujan, and again on Wednesday, October 22, for Diwali Balipratipada. However, there's a special exception: the annual Muhurat Trading session. This symbolic one-hour session will be held on Tuesday, October 21, from 1:45 PM to 2:45 PM, with modifications allowed until 2:55 PM.
Muhurat Trading: An Auspicious Tradition
Muhurat Trading is a long-standing tradition on the Indian stock market, dating back to 1957 when it was first introduced by the Bombay Stock Exchange. The National Stock Exchange adopted it in 1992. It marks the beginning of the new Samvat year, Vikram Samvat 2082, in the Hindu calendar. It is believed that trading during this auspicious hour brings prosperity and financial growth. Many families and brokers decorate trading terminals and light lamps, hoping for a profitable year ahead.
Trading during Muhurat session will be available across equities, F&O, currency, and commodities.
Significance and Market Sentiments
Historically, the Muhurat Trading session has often been associated with positive market performance, even during times of economic uncertainty. The BSE Sensex has closed higher in 14 of the last 18 Muhurat sessions. While experts caution against reading too much into short-term movements, many investors consider this session an auspicious time to make their first investments of the year.
Upcoming Holidays
After the Diwali holidays, there are three more stock market holidays for the year 2025: October 22 for Bali Pratipada, November 5 for Gurunanak Jayanti, and December 25 for Christmas.
Trading Hours and Other Considerations
The standard trading hours for the stock market in India are from 9:15 am to 3:30 pm, Monday through Friday. A pre-open session is held from 9:00 am to 9:15 am, allowing investors to place orders before the regular session begins.
Importance of Holiday Schedules
Being aware of the stock market holidays is essential for traders and investors to plan their strategies effectively. Adjusting strategies based on stock market holidays ensures better financial decisions. The NSE publishes a list of holidays on its official website.
Other Holidays in 2025
Besides Diwali, the stock market will remain closed on several other occasions in 2025, including Mahatma Gandhi Jayanti (October 2), and Independence Day (August 15).
