Why Is Stock Market Closed Today For Holi And Will It Open On March 4? Explained

Indian stock exchanges are closed on Tuesday, March 3, on account of Holi, leading to confusion among some traders as several states will celebrate the festival on Wednesday, March 4.

Both the National Stock Exchange and the Bombay Stock Exchange have declared a full trading holiday on March 3. There will be no activity in the equity, derivatives and securities lending and borrowing segments. Trading will resume on Wednesday.

The Multi Commodity Exchange of India will remain closed for the morning session between 9 am and 5 pm on Tuesday. It will reopen for the evening session from 5 pm to 11.55 pm. The National Commodity and Derivatives Exchange will remain shut for the entire day.

Holiday Date Sparks Debate

With Holika Dahan observed in many regions on March 2 and Holi festivities scheduled for March 4 in several states, some market participants questioned the choice of holiday date.

"What is the use of holidays made for festivals, if its given on the Wrong Date. Last year it was Diwali and now Holi tomorrow. These are the 2 major festivals then how can this be ignored?," asked X user Sharad Jhunjhunwala.

He further said: "As a trader, I would boycott trading on March 4, and I call from everyone around to do the same, Lets see how Institutions get the Fill," he said.

In a previous post, he noted that Tuesday being lunar eclipse, Holi celebrations are scheduled on March 4, even as Holika Dahan was observed late on Monday night.

The Reserve Bank of India holiday matrix reflects regional variations. It lists Holika Dahan on March 2, while March 3 is marked for Holi Second Day, Dol Jatra, Dhulandi, Holika Dahan or Attukal Pongala in different states. March 4 is separately recognised as Holi Second Day, Dhuleti or Yaosang Second Day in certain regions.

Samir Arora of Helios Capital said markets should also remain shut on Wednesday, arguing that Holi will be widely celebrated that day. He said a two day closure would allow clearer visibility on developments in the Iran conflict and help avoid volatility.

Iran War Triggers Market Plunge

The holiday follows a volatile trading session on Monday, March 2, amid global risk off sentiment linked to escalating tensions in the Middle East.

The Nifty 50 closed 312 points, or 1.24 percent, lower at 24,865. The BSE Sensex fell 1,048 points to settle at 80,238. Both indices had declined over 2 percent during intraday trade.

Broader markets also came under pressure. The Nifty Midcap 150 and Nifty Smallcap 250 dropped 1.7 percent and 1.9 percent, respectively. Larsen and Toubro and Reliance Industries weighed on the Nifty, while InterGlobe Aviation and L and T were among the top percentage losers. Twelve of the 15 sectoral indices on the NSE ended lower, led by auto and energy stocks. Defence, metal and pharma stocks bucked the trend.