Indian Stock Market Holidays List in 2023

Soon, 2022 will be history, and 2023 will begin. As the new year begins, everyone will start thinking about what they hope to accomplish on a personal and financial level. It’s essential to have your planner set up before you begin making plans. Every year’s first order of business is to check the calendar for the upcoming holidays.

Due to our vast history, India is home to many different languages and cultures. This is why we celebrate so many different holidays all year long. The Indian stock market, like any other institution, maintains its own set of official holidays. Investors should keep in mind the upcoming holidays as this would allow for more efficient planning and, thus, better-investing choices.

India’s stock market

The Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) are the two largest stock exchanges in India (National Stock Exchange). A stock may list on either exchange or both if its owners choose. The Indian stock exchange is open from Monday through Friday and is closed over the weekend. The stock market does not operate on other days of the week, either, due to the observance of national holidays and festivals.

List of Trading Holidays of the NSE Market in 2023

 List of Trading Holidays of BSE Market in 2023

Trading in the Muharat, 2023

Although the market will be closed all day on Sunday, November 12, 2023, in observance of Diwali, it will reopen that evening for a special Muhurat session. Timetables are often announced by the government one month in advance.a

What is the stock market like during the holidays?

Changes manifest early on. The “holiday effect” or “pre-holiday effect” describes a regular occurrence in which stock values experience a little increase the day before a holiday.

This may be due to several factors that have been proposed as explanations.

Some analysts attribute it to a decrease in trading activity as people take time off for vacations, resulting in fewer eyes on the market. Investor sentiment is another possible explanation. Some cautious investors sell off their riskiest holdings in the days leading up to a holiday if something unfavorable happens in the market while they’re gone.

Stock market performances are affected by several factors over the winter vacations, including reduced trading volume, the “seasonality” of the market, and quarterly and annual rebalancing by institutional investors. If history indicates, December is a month of extreme market volatility. For instance, December 2018 saw one of the most significant monthly falls in recent years, with the S&P 500 Index falling 9.2%, while December 2021 saw one of the best monthly performances in 2021, with the index rising 4.4%.

Company performance can also significantly influence stock performance during the winter season. Early sales data can prompt investors to get enthusiastic about particular stocks despite a higher inflation rate, as many consumers are expected to visit stores this Christmas season. The newest projection from the National Retail Federation (NRF) predicts a 6% to 8% increase in holiday sales from November 1 to December 31, compared to the same period in 2021. Furthermore, non-store sales like those made online are anticipated to grow by 10% to 12%.

For the benefit of potential investors: dos and don’ts

Experts recommend the following if you’ve been feeling the need to reassess your investments since the holidays:

• Avoid trying to predict when the market will rise or fall to avoid losing money. Avoid second-guessing the stock market while you’re away for the holidays; you might lose more money. The market’s performance varies significantly yearly, making it dangerous to rely on investing decisions on seasonality effects. Due to reduced market liquidity, trading during the Christmas season can be fraught with peril.
• Do on creating lasting wealth, and resist the need to make rash adjustments to your portfolio. There is always some danger when you have money invested in the market, but sticking it out now could pay you huge dividends later. Maintaining a focus on long-term allocations and riding out any short-term market volatility is the best action.