If you are planning to track markets or place trades today, there is a pause on Dalal Street.
Indian equity markets are shut today, March 31, on account of Mahavir Jayanti, a day that marks the birth anniversary of Lord Mahavir. Lord Mahavir is an important spiritual figure in Jainism.
This means there is no trading activity across key segments, including equities, derivatives, and securities lending on both the NSE and BSE.
Let’s take a look at a look at the key factors investor need to know –
A break in a volatile week
The holiday comes at a time when markets have been under pressure. This offers investors a brief breather.
With two holidays falling in the same week, trading days are limited.
Out of the usual five sessions, markets will function only for three days.
Both exchanges have aligned their holiday schedules, so there is no activity in equity, equity derivatives, currency derivatives, or electronic gold receipts during the day.
For retail investors and traders, this essentially means a complete halt in stock market transactions for the session.
What happens when markets reopen?
Trading will resume on Wednesday, April 1. However, there is a small catch that many investors often overlook. While buying and selling of shares will be allowed as usual, the day is marked as a settlement holiday due to annual bank closing.
In simple terms, this means that even though trades can happen, the actual transfer of money and shares between buyers and sellers will not be processed on that day.
The settlement will instead be pushed to the next working day. For those actively trading, this delay can affect fund availability and delivery timelines.
Another holiday around the corner
The pause does not end here. Markets will again remain closed on Friday, April 3, in observance of Good Friday.
This creates a long weekend for market participants, with fewer trading sessions in between.
Global markets, including the US, are also expected to remain shut on that day, which could reduce international cues.
What about commodity markets?
The picture is slightly different in the commodity space. While the National Commodity & Derivatives Exchange remains fully closed on March 31, the Multi Commodity Exchange of India follows a split schedule.
There will be no trading in the morning session, but activity will resume in the evening window from 5:00 PM to 11:55 PM.
Holiday calendar ahead
Looking beyond this week, April itself has another market holiday lined up for Ambedkar Jayanti on April 14.
As the year progresses, several other holidays are scheduled, including Maharashtra Day and Bakri Id in May, and Muharram in June.
Interestingly, there are no market holidays in July and August, making it a relatively uninterrupted period for traders.
Activity will pause again in September for Ganesh Chaturthi, followed by multiple holidays in October and November. The final market closure of the year will be for Christmas in December.