Holidays are the most pleasant times of all. It gives us a sense of relief, a day we can call our own, do anything with, and mainly rest. Since today we look at it as a race – a race to run fast, everyone running to a destination that never seems to come. But, as much as it is pleasant when it’s a holiday for us – so do we feel the same way for someone else? Let me give you an example. If you have to see the manager of your bank today, but today is a bank holiday – how does it feel? In a simple way, everything affects everyone. So, coming back to what we have to mainly discuss – does that mean our Holidays also affect the stock market?
Have you been wondering, on Christmas, how the New York Stock Exchange is doing? Or have you been wondering, on Diwali, how the National Stock Exchange is being impacted? You can stop wondering now. It’s time for some clarity. Here you go, find your answers in this article.
Do Holidays Impact the Stock Market?
Indian Stock Exchanges, like the NSE and BSE, have a list of holidays, and they are closed on those days. Along with Saturdays and Sundays, they do not trade on their holidays, as listed. Specifically, on these holidays, there will be no trade happening in the equity sector and equity derivative segment.
There is a complete list of BSE and NSE Holidays, which is excluding Saturday and Sunday.
What are the Holidays of the Stock Market
As already said, stock exchanges have their own set of Holidays listed every year. But, if there is going to be a change in this holiday, the stock Market lets the stakeholders know with updates beforehand, so you wouldn’t have to worry about that. Here are some of the Most commonly listed stock market Holidays.
Here are some of the common Holidays of Indian stock exchanges.
- New Years Day
- Swami Vivekanda Jayanti
- Guru Gobind Singh Jayanti
- Makarov Sankranti
- Subhas Chandra Bose Jayanti
- Republic Day
- Thiruvalluvar Day
- Maha Shivaratri
- Ram Navami
- Good Friday
- Republic Day
- Baba Saheb Ambedkar Jayanti
- Ganesh Chaturthi
- Mahatma Gandhi Jayanti
It isn’t just in Indian markets that Holidays Impact the Stock Market. It is also applicable to other countries too.
For instance, let’s look at the US stock market and how they are affected by some Holidays.
Black Friday and Thanksgiving Affecting the US Stock Market
Black Friday, as you would know – is the name for the day after Thanksgiving. It is also the most crucial for retail and spending events. On these days, investor confidence could be affected by whether or not their expectations would be met.
Thanksgiving is quite important for many businesses, especially the ones in the food sector. Still, the US stock markets are closed on this day and open only half a day on Black Friday. The global market is still operating, and stock market trading wouldn’t be affected by Thanksgiving only.
Analysts and investors scoff at Black Friday and the real prediction for the fourth quarter or markets on a whole. However, these still suggest that short-term gains and losses could occur.
Holiday Impact on Returns
The stock market is actually subject to trends of the year, month, or even the week. A share price can rise or fall. It is because of the changes in the number of traders that are active in the market, or it is even because of the technical analysis that has made historic price patterns more self fulfilling.
The stock market tends to usually perform well in the Month of January because it is when many investors have fresh capital to invest in shares. The share price is known to fall over a period as big traders go on holidays and they sell their high-risk funds.
At the end of the fiscal quarter or the year, you can also see that the stock markets become quite risky or volatile with all the shares proved of companies coming back or reversing.
At the end of the taxation year, the investor would also sell stocks that have fallen in value of the year. This is done so they can at least claim their capital losses against the tax bill. The share price often goes ahead of the long weekends and holidays. They can experience the biggest of falls on Mondays, as over the weekend is over, and the traders have a spirit that has fallen due to the return to work.
Share prices can contradict and experience the largest rise on Friday. These share prices also perform better at the end and beginning of a month and dip in the middle.
All of these predictions come from past performance and historical data. The future can most times contradict these predictions and analyses. You need to do more research and get your feet into the mud before you can follow some trends that were previously spoken about. So, get ready for more research and analysis – you are ready to go.