Stock markets shut for Holi today; traders question holiday timing
Confusion over festival dates as NSE, BSE close on March 3 while Holi celebrations continue in many states on March 4
Indian stock exchanges will be closed on Tuesday (March 3) on account of Holi, even as several parts of the country are set to celebrate the festival on Wednesday (March 4), prompting confusion among sections of the trading community.
Both the National Stock Exchange and the Bombay Stock Exchange declared a full trading holiday on March 3. There will be no activity across the equity, derivatives and securities lending and borrowing (SLB) segments. Trading is scheduled to resume on Wednesday, when many states will mark the festival of colours.
Commodity markets follow mixed schedule
The Multi Commodity Exchange of India (MCX) will remain shut during the morning session from 9 am to 5 pm on Tuesday but will reopen for the evening session between 5 pm and 11.55 pm. In contrast, the National Commodity and Derivatives Exchange (NCDEX) will stay closed for the entire day.
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The holiday schedule has sparked debate among traders, as Holika Dahan was observed late on March 2, while Holi celebrations in many regions are slated for March 4.
Traders raise objections
Some market participants questioned why exchanges opted for a Tuesday closure this year. One market participant expressed dissatisfaction on social media, arguing that major festivals such as Holi and Diwali should align more closely with widespread celebrations. He even called for traders to boycott trading on March 4.
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The Reserve Bank of India holiday matrix reflects regional variations, listing Holika Dahan on March 2 and Holi (Second Day), Dol Jatra, and Dhulandi on March 3 across different states, with March 4 separately recognised as Holi second day, Dhuleti, or Yaosang in select regions.
Samir Arora of Helios Capital suggested markets could have remained shut on Wednesday as well, citing broader celebrations and the potential for reduced volatility amid global uncertainties.
Volatile start to the week
The holiday follows a sharp sell-off on Monday (March 2). The Nifty 50 fell 312 points, or 1.24 per cent, to close at 24,865, while the BSE Sensex dropped 1,048 points to 80,238, amid global risk-off sentiment linked to escalating tensions in West Asia.
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Broader indices such as the Nifty Midcap 150 and Nifty Smallcap 250 also declined, as most sectoral indices ended in the red.