Are Banks and Stock Markets Likely to run normally During Muharram in India?

Muharram, the first month of the Islamic calendar, holds significant religious importance in India, especially the 10th day known as Ashura. This day is observed with various rituals and is recognized as a public holiday in many parts of the country. For 2025, Muharram is expected to be observed on July 6 or 7, depending on the moon sighting, with the public holiday officially recognized on July 6 but possibly shifting to July 7 if the crescent moon is not sighted in time. This lunar-based timing directly impacts whether banks and stock markets will operate normally on these dates.

Muharram 2025 and Market Operations: What to Expect?

July 6, 2025 (Sunday): for this day is a Sunday, banks and stock markets such as the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) are beforehand closed for their regular weekly holiday. Therefore, no extra holiday is declared for Muharram on this date and no break occurs in banking or trading activities.

July 7, 2025 (Monday): If the moon is not spotted on July 5, Muharram abidance and the related holiday might shift to Monday. In such a case:

Banks and government offices in many states are likely to remain closed as Muharram is often announced a public holiday in regions with significant Muslim populations.

Stock markets (NSE and BSE) are expected to observe a holiday, suspending trading in equity, derivatives, currency, and interest rate segments for the entire day.

The Multi Commodity Exchange (MCX) typically closes during the morning session but resumes trading in the evening session on Muharram.

Why Is This Important for Investors and Traders?

Understanding the Muharram holiday schedule is crucial for planning financial transactions, especially for active traders and investors. Since the exact date depends on lunar observations, official notifications from the Securities and Exchange Board of India (SEBI) and the Reserve Bank of India (RBI) are released shortly before the holiday to confirm closures.

Traders should:

1. Monitor official announcements closely.
2. Plan their trades and banking transactions ahead of time to avoid last-minute disruptions.
3. Be aware that if Muharram falls on a weekday (likely July 7), markets and banks will not operate normally.

*Subject to official moon sighting confirmation and government notifications.

Muharram 2025 will impact banking and stock market operations only if the holiday falls on a weekday, most likely July 7. On this day, expect banks and stock exchanges to remain closed, while the commodity market may partially operate. Staying updated with official announcements is essential for smooth financial planning during this period.