NSE Holiday 20 Oct: Is the Stock Market Open or Closed for Diwali 2025?

Every year, traders and investors keep a close eye on the holiday calendar of the National Stock Exchange of India (NSE). Knowing when the market is open or closed helps us plan our buys, sells, and strategy better. Many investors are asking whether the NSE will operate or stay closed on 20 October 2025 during the Diwali festival. We’ll study what the official calendar says, what the tradition of Muhurat trading is all about, and how this might impact your strategy.

Diwali 2025 and Market Significance

Diwali is one of India’s most important festivals. It’s often a time for new beginnings, lights, and celebration. In the financial world, it also signals the start of a new Hindu financial year (Samvat). The festive mood and symbolic fresh start matter to markets and to investors.
This year, there was some confusion about whether Diwali would be celebrated on 20 or 21 October. Because the lunar date (Amavasya Tithi) falls on 20 October, many people expected Diwali that day. But the market holiday calendar uses the official holiday declaration, which matters for the NSE.
Because Diwali has financial symbolism, things like special trading sessions (Muhurat trading) happen, and sentiment often gets a boost, so it’s smart to know the schedule.

NSE Holiday Calendar 2025 Overview

We reviewed the official holiday list for the NSE and other major exchanges for 2025. According to the exchange calendar:

• The NSE will observe a full trading holiday on Tuesday, 21 October 2025, for Diwali Laxmi Pujan.
• Additionally, a holiday on Wednesday, 22 October 2025, for Balipratipada (the day after Diwali) is also marked.
• Other holidays include Mahatma Gandhi Jayanti / Dussehra (2 Oct) and Christmas (25 Dec), among others.
• It’s worth noting that during these NSE holidays, all major trading segments,  equities, F&O (futures and options), securities lending & borrowing, are affected. For example, the holiday on 21 Oct applies across those segments. So when we talk about an “NSE Holiday”, we mean that the exchange is officially closed for normal trading on that date.

Is NSE Closed on 20 October 2025?

Here’s the key part: On Monday, 20 October 2025, the NSE will not be closed. Market activity will proceed as usual. According to several sources, the official holiday starts on 21 October.
To break it down:

• Monday 20 Oct: Market open for regular trading (even though in some states Diwali celebrations may already be underway).
• Tuesday 21 Oct: Market closed for Diwali Laxmi Pujan (except for special session).
• Wednesday 22 Oct: Market closed for Balipratipada.
  So if you’re planning around 20 Oct, yes, you can trade. But you should plan for the holiday starting the next day.

Muhurat Trading: Will It Happen on 21 October?

One of the unique traditions in Indian financial markets is the Muhurat Trading session. Here’s what we need to know for 2025:

• Muhurat Trading is a special one-hour session held annually to mark the start of the new Hindu financial year (Samvat 2082 in 2025) on Diwali.
• This year, the session is scheduled for Tuesday, 21 October 2025, from 1:45 pm to 2:45 pm IST. Pre-open session from 1:30 pm, post-close modifications until ~2:55 pm.
• Though the market is closed for normal trading, this one-hour session is open across equities and derivatives.
• Participation is often symbolic: traders and investors place small trades as a gesture of good luck, but the trades are real, and settlement obligations apply.

In short: Yes, Muhurat trading happens, and it happens on the same day as the holiday, 21 October. So if you were wondering, “Is the NSE open on 21 Oct?” Regular trading will be closed, but a limited special session will still be held.

Impact of Diwali Holiday on Market Activity

With holidays and special sessions come shifts in trading patterns. Here are some points we observed:

• Volume and volatility: During the Muhurat session, volumes tend to be lower compared to normal days, but sentiment tends to be optimistic.
• Pre-holiday trading: On the trading day before a holiday (in this case, on 20 Oct), some investors may reduce activity or close positions to avoid risk.
• Post-holiday effect: After the break (post-22 Oct), markets may reopen with renewed momentum, as sentiment can lean positive with the festive mood and symbolic fresh start. For example, reports show that indices opened strongly on Diwali day (20 Oct) with the Nifty 50 passing 25,900 and Sensex rising ~0.76%.
• Strategy awareness: We should keep in mind the settlement holidays. For example, on 22 Oct, the equity, F&O, and currency markets will be closed for settlement.
  So, the “NSE Holiday” of 21 Oct and the special session of Muhurat impact how we plan trades around those days.

Sectors and Stocks to Watch Around Diwali

Festive seasons often influence certain types of stocks and sectors. We recommend watching these:

• Consumer & FMCG: With Diwali shopping in full swing, consumer-facing firms often get a boost.
• Gold & jewelry: Festive buying in jewelry and gold strengthens these sectors.
• Auto & retail: As people spend more, auto sales and retail activity may pick up.
• Financials: With new buying interest, sentiment in banks and financial stocks can tilt positive.
  Because the holiday signals a new financial year start, investors may position for longer-term moves. Instead of only thinking about whether the market is open, we should also consider which sectors could gain from the festive boost.

Trading Strategies for Investors

Given the schedule and context, here are some practical tips we can use:

• Check the calendar ahead: Since the NSE is closed for normal trading on 21 Oct, plan any required trades before that date if you need execution.
• Use the Muhurat session thoughtfully: If you choose to participate, view it as a symbolic trade rather than expecting huge returns.
• Risk management: Be aware that holidays can mean less liquidity and potentially higher swings around open and close days.
• Long-term vs short-term: If you are a long-term investor, you might use the festival as a planning moment. If you’re short-term, consider the holiday break as a pause and plan accordingly.
• Set alerts and check settlements: Because 22 Oct is also a holiday for settlement in many segments, remember that fund credits or trade settlements might be delayed.
  By keeping the “NSE Holiday” in mind and aligning our trades with the calendar, we reduce surprises and manage better.

Conclusion

To wrap up: The key fact is that the NSE holiday for Diwali in 2025 falls on Tuesday, 21 October, with a regular trading session closure, and Wednesday, 22 October for Balipratipada. The day before (Monday, 20 October), markets are open. A special one-hour Muhurat trading session is scheduled for 1:45 pm – 2:45 pm on 21 October. For traders and investors, this means: plan ahead, know your session, and use the holiday as an opportunity to reset and reflect. And most importantly: always refer to the official exchange notifications. This way, we stay prepared and avoid being caught off-guard by “Is the NSE Holiday or not?”

Disclaimer:

This content is for informational purposes only and is not financial advice. Always conduct your research.