Stock Market Holiday 2025: Will NSE and BSE be closed on October 20 or 21 for Diwali?

There has been some confusion among investors this year about the exact Diwali date: October 20 or 21. But for traders, one thing is certain. Both the NSE and BSE will remain closed on October 21 for Diwali Lakshmi Puja, and again on October 22 for Balipratipada. However, on Tuesday, October 21, markets will open briefly for the traditional Muhurat Trading session, a symbolic one-hour window that marks the start of the new Samvat year.

This special session lasts from 1:45 PM to 2:45 PM, with changes allowed until 2:55 PM. Trading will be possible in shares, F&O, currencies and commodities.

Why Diwali is important for Indian markets

Diwali is one of India’s most celebrated festivals – a symbol of prosperity, renewal and victory of light over darkness. In stock market culture, it also marks the spiritual start of a new financial year.

Muhurat Trading has been part of Indian market tradition for decades, where investors place their first trades as a gesture of good luck. Many families and brokers light lamps and decorate trading terminals to welcome a profitable year.

Upcoming trade fair holidays in 2025

After the Diwali holidays, there are only three trading breaks left this year: October 22 for Bali Pratipada, November 5 (Prakash Gurpurab) and December 25 (Christmas). These closures come after a festive season full of events that has kept investors and traders alike on their toes.

Market Outlook: Festive Cheers Boost Benchmarks

The Indian market is heading into the Diwali week on a strong note. The Sensex gained 1,451 points (1.76%) to close at 83,952, while the Nifty 50 rose 1.68% to 25,709, marking the third straight week of gains. The purchases were driven by steady domestic demand, cooling inflation and encouraging corporate earnings.

While there was some caution in the early sessions due to global trade concerns, momentum increased as the week progressed. Foreign inflows and a stronger rupee further boosted sentiment.

Sectors leading the rally

The banking and financial sectors led the rally with the Bank Nifty hitting a new record high on the back of strong participation from both retail and PSU lenders. FMCG, real estate and consumer stocks also rose 2-4% amid festive buying trends. However, the IT and metals sectors saw mild selling due to profit bookings and weak global demand signals. Midcap and smallcap stocks showed mixed performance with midcaps largely flat, while smallcaps fell around 0.6%, reflecting cautious trading ahead of the results.

Top triggers to watch post-Diwali

Investors will focus on Q2 26 earnings from big names like HUL, SBI Life Kotak Mahindra Bank, ITC and Airtel, which could set the tone for the market in Samvat 2082.

Globally, updates on US-China trade negotiations and inflation expectations will shape foreign investor flows and overall risk appetite.

Technical vision and strategy

Analysts say Nifty has crossed a key hurdle at 25,450 and could retest its all-time high of 26,277 if buying continues. The immediate support is around 25,150. Bank Nifty’s next targets are 58,500 and 60,000, with support near 56,500.

They suggest a buy-on-dips approach, focusing on large-cap sectors such as banking, FMCG and auto, which are showing strong earnings visibility. Traders should remain selective in small caps and closely monitor global signals.