As Eid-e-Milad, the birth anniversary of Prophet Muhammad, is observed across India today, September 5, 2025, a key question for traders and investors is the operational status of the nation’s premier stock exchanges, the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). Contrary to any initial speculation of a market closure, both the NSE and BSE are operating as usual today, allowing trading activities to proceed without interruption.
Trading Continues as Normal on September 5
Investors and market participants can actively engage in buying and selling on Friday, September 5, 2025. Official holiday calendars released by both the NSE and BSE clearly indicate that Eid-e-Milad is not designated as a trading holiday for the equity, derivatives, or commodity segments. This means the trading screens will be live, and transactions can be executed as on any other regular trading day.
Understanding the Settlement Holiday Nuance
While trading is fully operational, it is crucial to understand that September 5, 2025, has been declared a settlement holiday by the Reserve Bank of India (RBI). This distinction is vital: a trading holiday means the exchanges are closed, halting all transactions. A settlement holiday, however, allows trading to continue, but the crucial back-end processes of clearing and settlement of funds and securities are deferred. This is because essential financial institutions, including banks, depositories like NSDL and CDSL, and the RBI itself, remain closed on this day.
Consequently, trades executed on September 4 and September 5 will not be settled on their usual timelines. The credit of intraday profits from September 4’s trading and the settlement of all trades conducted on September 5 will be pushed to the next working day, Tuesday, September 9, 2025. This creates a temporary pause in the usual flow of money and shares moving between accounts.
Official Stance and Holiday Calendars
The published holiday schedules for both NSE and BSE for 2025 do not list Eid-e-Milad as a trading holiday. The exchanges adhere to a pre-defined calendar that includes national and regional festivals, along with specific market closures. For September 2025, the calendars confirm no trading holidays apart from the regular weekend closures.
It is important to note that while September 5 is a settlement holiday, the RBI has shifted the public holiday for Eid-e-Milad to Monday, September 8, in certain regions like Mumbai. This shift was made to accommodate other observances and ensure smoother public administration. However, the market’s trading operations on September 5 are not affected by this relocation of the holiday.
Background of Eid-e-Milad
Eid-e-Milad, also known as Mawlid al-Nabi or Prophet’s Birthday, is an important Islamic festival that commemorates the birth of the Prophet Muhammad. It is observed on the 12th day of Rabi’ al-Awwal, the third month of the Islamic lunar calendar. The day is marked by prayers, processions, and reflections on the Prophet’s teachings and life. While it is a gazetted public holiday for many government offices and schools, it does not translate into a trading halt for the financial markets.
Implications for Market Participants
The settlement holiday on September 5 means investors and traders should be aware of potential short-term impacts. These can include delays in fund availability for reinvestment and a temporary reduction in liquidity. In the derivatives and currency markets, the absence of immediate settlement might lead to minor volatility as participants adjust their positions. Institutional investors may also opt to defer large trades until normal settlement operations resume.
In summary, the Indian stock market is functioning normally today, September 5, 2025, for Eid-e-Milad. Investors can continue to trade as usual, but they must factor in the delayed settlement of their transactions. The next scheduled stock market holiday will be on October 2, 2025, for Gandhi Jayanti and Dussehra.
