The 2025 Diwali season brings with it a brief but highly symbolic trading session for investors across India. Both the NSE and the BSE will observe 14 official holidays this year, excluding weekends.
However, the spotlight remains on Diwali, when markets will open for the Muhurat Trading session on October 21, followed by a full holiday on October 22 for Balipratipada.
What Is Muhurat Trading?
Muhurat Trading is an hour-long session held to mark the beginning of the Hindu New Year and is widely regarded as an auspicious time for investors.
In 2025, the session will take place on Tuesday, October 21, from 1:45 PM to 2:45 PM, with a pre-open window starting at 1:30 PM. This session covers NSE, BSE, and other market segments.
During Muhurat Trading, participants place token buy and sell orders, reflecting hopes for prosperity and financial growth in the coming year. Historically, the session is characterised by light trading volumes but often closes on a positive note, with Sensex and Nifty typically seeing modest gains. The event is ceremonial, attracting participation from individual investors, families, and institutional traders alike.
Are Markets Open On October 22?
Following the Muhurat Trading session, the stock market will remain closed on Wednesday, 22 October, in observance of Balipratipada, also known as Bali Pratipada or Govardhan Puja. This results in a two-day trading pause during the Diwali week, with normal market operations resuming on Thursday, October 23.
Investors are advised to plan trades in advance during this period due to the short trading window. Liquidity is generally low during Muhurat Trading, and spreads may widen, making it unsuitable for large speculative trades.
Additionally, volatility may increase both before and after the Diwali break, so careful monitoring is recommended.
The holidays affect all segments of India’s equity market, including equity derivatives and securities lending (SLB). The commodity derivatives segment on the NSE will also remain closed on October 21.
Tips for Investors During Diwali Week 2025
- Plan trades ahead of the Diwali break to avoid last-minute disruptions.
- Limit trade size during the Muhurat session due to low liquidity.
- Keep an eye on market announcements for any last-minute changes to the holiday schedule.
- Monitor market movements before and after Diwali, as fluctuations can impact short-term strategies.
Upcoming Stock Market Holidays In October
Date |
Day |
Holiday |
October 18, 2025 |
Saturday
|
Weekend Holiday
|
October 19, 2025 |
Sunday
|
Weekend Holiday |
October 21, 2025 |
Tuesday
|
Diwali * Laxmi Pujan |
October 22, 2025 |
Wednesday
|
Diwali Balipratipada |
October 25, 2025 |
Saturday
|
Weekend Holiday |
October 26, 2025 |
Sunday
|
Weekend Holiday
|