The BSE Limited and National Stock Exchange (NSE) have released the official 2026 trading holiday calendar, detailing 15 full trading days when Indian equity markets will remain closed. The comprehensive schedule covers equity, equity derivatives, and currency derivatives markets across both cash and derivatives segments.

New Year Trading Operations

Indian stock markets will continue trading on January 1, 2026, while most major global exchanges observe the New Year holiday. The BSE and NSE will maintain regular trading hours, providing investors with market access as the new year begins. Major international stock exchanges including China, Hong Kong, Japan, Singapore, France, Germany, UAE, UK and the US will remain closed on the first day of 2026.

Complete 2026 Holiday Schedule

The 15 trading holidays are strategically distributed throughout the year, offering seven long weekends when holidays fall on Fridays or Mondays:

Weekend Celebrations and Special Sessions

Several festivals will not impact trading as they fall on weekends, including Mahashivratri (February 15), Eid-ul-Fitr (March 21), Independence Day (August 15), and Diwali Laxmi Pujan (November 8). However, the traditional Muhurat Trading session will be conducted on November 8, 2026, despite normal trading being closed on that Sunday.

Commodity Exchange Operations

The commodity exchanges will operate with modified schedules on New Year's Day:

Strategic Significance for Market Participants

The advance disclosure of the 2026 holiday calendar enables market participants to better manage settlements, anticipate periods of reduced liquidity, and adjust trading strategies before market closures. The seven long weekends provide opportunities for strategic planning, portfolio evaluation, and investor education activities. This early notification allows investors and traders to plan their operations effectively throughout the year, ensuring comprehensive coverage across all trading segments under exchange bye-laws and F&O regulations.

Dalal Street investors became richer by ₹30.20 lakh crore in 2025, helped by over 8% surge in the BSE benchmark Sensex, despite facing multiple headwinds including foreign fund exodus, tariff-related uncertainties, elevated valuations and a weakening rupee. The markets demonstrated remarkable resilience, supported by strong domestic investor participation and macroeconomic stability marked by robust GDP growth.

Sensex Performance and Market Capitalization

The market performance data reveals the strength of Indian equities throughout 2025:

The market capitalization of BSE-listed companies reached the coveted ₹400-lakh crore mark for the first time in April, highlighting the sustained growth trajectory of Indian markets.

Year of Consolidation and Transition

Industry experts characterized 2025 as a consolidation year for Indian equities. After several years of strong double-digit returns, benchmark indices delivered more moderate gains of 8-10%. "While these returns may appear modest compared to previous years, they came amid global headwinds, foreign fund outflows, and valuation corrections," noted Ponmudi R, CEO of Enrich Money.

Domestic markets grappled with muted corporate earnings growth, elevated valuations, a weakening rupee, and persistent Foreign Institutional Investor (FII) outflows. These factors kept sentiment cautious despite a stable macro backdrop, according to Santosh Meena, Head of Research at Swastika Investmart.

Foreign Fund Outflows and Global Challenges

The year witnessed record foreign investor outflows, creating significant headwinds for market performance:

Globally, markets were influenced by geopolitical tensions, tariff-related uncertainties, and evolving US Federal Reserve interest rate expectations, adding to the complexity of market dynamics.

Record IPO Activity Supports Markets

A record number of initial public offerings provided significant support to market performance in 2025. The largest main-board IPOs demonstrated strong investor appetite:

This robust IPO activity reflected continued confidence in Indian market fundamentals and provided additional liquidity support.

Domestic Support Drives Resilience

"Despite outflows continuing to be an issue for foreign investors, the resilience of the market was demonstrated. One of the key drivers for the Indian market in 2025 has been the presence of robust domestic investor support," said Nitin Rao, CEO of InCred Wealth. Consistent SIP inflows, increased retail participation, and confidence in the long-term growth story provided stability during periods of global volatility.

The top five companies by market capitalization reflect the strength of Indian corporate leaders:

Historical Context and Market Evolution

Comparing 2025 performance with previous years shows the evolution of market dynamics:

Sunny Agrawal, Head of Fundamental Research at SBI Securities, explained: "Against the backdrop of healthy returns during 2020-2024 period, 2025 has turned out to be a year of consolidation and mean reversion. Some pockets of markets were trading at an expensive valuation and this coupled with earnings slowdown with increasing global uncertainties led to correction in the market during the first quarter of 2025 followed by gradual recovery since April across large caps."