Does India have too many trading holidays? The debate explained

India’s stock market calendar is back in the spotlight after a public exchange between Zerodha founder and CEO Nithin Kamath and Helios Capital’s Samir Arora reignited a long-running debate over whether one of the world’s largest equity markets shuts too often.

The discussion picked up momentum on social media this week after Kamath criticised the closure of stock exchanges for Mumbai’s municipal elections, prompting a response from Arora.

Both the BSE and NSE remained shut on January 15 due to municipal elections in Maharashtra.

In a post on X (formerly Twitter), Kamath said exchanges with international linkages should not shut for local elections. “The fact that our exchanges, which have international linkages, are shut down for a local municipal election shows poor planning and a serious lack of appreciation for second-order effects,” he said on Thursday.

Kamath also said these holidays exist because there is little incentive for stakeholders to oppose them. He added that such closures hurt India’s credibility with global investors.

Kamath’s remarks sparked an online debate, with veteran fund manager Samir Arora questioning whether fewer holidays actually make markets more global.

“I hope you will say the same thing when the market is open on Sunday Feb 1st. Why do we want the market to be open just because there is a budget that day? If our exchange has international linkages, is it not unfair to foreign investors to have the market open on Sunday,” Arora replied to Kamath’s post.

A growing holiday list

With January 15 now added to the list, Indian stock exchanges will observe 16 trading holidays in 2026, excluding weekends. These holidays include national festivals, religious observances and regional events.

Compared with global peers, this number stands out.

Major US exchanges such as the NYSE and NASDAQ typically observe around nine market holidays in a year, while large European markets like the London Stock Exchange and Euronext also operate with fewer non-trading days.

This contrast has fuelled questions about whether India’s market calendar is out of step with a globalised, always-on financial system.

Why the issue matters

Indian equity markets are increasingly connected to global capital flows. Foreign institutional investors continue to play a key role in liquidity and price discovery. In such an environment, frequent market closures can delay reactions to global events and slow risk management.

Supporters of the current system argue that global investors understand time zone differences and local holidays. They say fewer trading days do not automatically weaken a market.

Arora explains market holiday stand

Speaking to Firstpost, Arora said India does not need to align its trading calendar with the US or Europe.

“There is zero need to match our trading time with US or other centres,” he said.

“International investing means managing different time zones and all investors are aware of this.”

He also dismissed concerns about real time global participation. “On one hand we want to attract long term investors and on the other hand we worry about whether they can trade on some breaking news in their own time zone- absolutely no need,” Arora said.

According to him, the push for longer trading hours and fewer holidays comes mainly from traders. He said India already has “enough and more trading in India than is needed- that is why Sebi and govt are finding it uncomfortable.”

Nithin Kamath declined to comment on the matter when Firstpost reached out to him as debate raged on.

Trading holidays are decided by exchanges in consultation with regulators and the government. As Indian markets grow in size and global relevance, pressure may increase for a more transparent and principle based approach.

For now, a single market holiday has triggered a wider conversation about how India balances domestic priorities with global ambitions.