Indian Stock Markets Closed on March 31 for Eid-ul-Fitr

April Trading Session

The Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) remained shut on March 31, 2025, in observance of Eid-ul-Fitr. Market participants had been uncertain about the holiday schedule due to the varying lunar calendar, but as per the official exchange calendar, trading across all segments—including equities, equity derivatives, and the securities lending and borrowing (SLB) segment—was suspended for the day.

The closure of the stock market comes at a time when investors have been closely monitoring global economic developments, particularly the potential impact of the Trump administration’s latest trade policies. With the fiscal year-end concluding just before the holiday, traders had taken positions in anticipation of volatility once markets reopen on April 1.

Market Closure Aligns with Exchange Calendar

Unlike many fixed-date holidays, the timing of Eid-ul-Fitr depends on the sighting of the crescent moon, leading to uncertainty each year. While some speculated that the festival would be observed on March 31, others expected it on April 1. However, with the moon sighted on Sunday evening, the festival was officially declared for March 31 across India.

Despite this uncertainty, the holiday for financial markets follows a pre-determined schedule. According to the holiday calendars released by BSE and NSE at the start of the year, Indian stock exchanges remained closed for trading activities on Monday. Additionally, trading in the currency derivatives segment was also suspended for the day.

Eid-ul-Fitr is a significant Islamic festival, and its date varies annually based on lunar observations. However, financial market holidays are scheduled in advance by exchanges.

Stock Market Performance Before the Holiday

The Indian stock market had closed the previous trading session on a high note, with major indices posting a five percent gain for the fiscal year amid ongoing concerns over U.S. trade tariffs. Investors navigated a complex environment, balancing optimism about domestic economic growth with fears over potential trade disruptions due to the policies of U.S. President Donald Trump.

In the last session before the holiday, the benchmark indices—BSE Sensex and NSE Nifty 50—saw modest gains as investors positioned themselves for the upcoming quarter. While banking and IT stocks led the rally, auto and export-driven sectors remained under pressure due to the looming tariff threats.

Indian markets posted a five percent annual gain despite global uncertainties, with investors taking a cautious approach ahead of April’s trading session.

Global Trade Policies and Market Sentiment

With the new financial year beginning on April 1, global economic factors remain a key concern for investors. The recent announcement of reciprocal tariffs by the Trump administration has heightened tensions in global markets, impacting trade-dependent sectors such as automobile manufacturing and consumer goods.

Moreover, fluctuations in crude oil prices and geopolitical uncertainties in the Middle East continue to influence investor sentiment. Oil prices had seen slight declines despite Trump’s warning of possible secondary tariffs on Russian oil buyers, reflecting a complex interplay between global supply dynamics and geopolitical risks.

Analysts have suggested that the first week of April could see increased volatility as traders digest global macroeconomic developments alongside domestic economic indicators such as GST collections, manufacturing PMI data, and corporate earnings expectations.

Geopolitical tensions and trade policies remain significant risk factors, with potential impacts on market volatility in April.

Upcoming Market Holidays in April 2025

As traders return to the market on April 1, it is essential to be mindful of the upcoming holidays that will affect trading schedules. In addition to the Eid-ul-Fitr closure, Indian stock exchanges will observe three more market holidays in April:

• April 10 (Thursday) – Shri Mahavir Jayanti

• April 14 (Monday) – Dr. Baba Saheb Ambedkar Jayanti

• April 18 (Friday) – Good Friday

These holidays will see the suspension of trading across all major segments, including equity, currency, and derivatives. Investors planning their trades should take these non-trading days into account to avoid liquidity constraints.

April has multiple market holidays, requiring investors to adjust their trading strategies accordingly.

Market Outlook: Key Indicators

As markets reopen in April, investors will be closely tracking multiple factors that could influence stock performance in the new quarter. Key focus areas include:

1. Corporate Earnings Season: With the fourth quarter of FY24 results set to be announced, stock movements will be driven by corporate performance and future earnings guidance.

2. Inflation and Interest Rate Trends: Investors will look at domestic inflation data and the Reserve Bank of India’s (RBI) monetary policy stance, especially in light of global interest rate trends.

3. FII and DII Flows: The level of foreign institutional investor (FII) and domestic institutional investor (DII) activity will determine market liquidity in the new quarter.

4. Global Economic Developments: With ongoing geopolitical issues and trade tensions, global market trends will play a crucial role in shaping investor sentiment.

Traders and investors should adopt a cautious approach as they navigate these factors while keeping an eye on sectoral performance and market momentum in the early days of the new financial year.