When it comes to stock trading in India, there are two major exchanges – the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). While both exchanges facilitate buying and selling of securities, it is essential to understand the calendar of trading holidays of both exchanges to plan your trading activities effectively. In this blog post, we will compare and contrast the trading calendars of BSE and NSE to help you make informed decisions about your trading activities.
Understanding BSE Holidays
The BSE is the oldest stock exchange in Asia and the oldest in the world. It was established in 1875, and its history dates back to the times of the British Raj. BSE was established as a ‘Native Share and Stock Brokers’ Association’ and was renamed as ‘Bombay Stock Exchange’ in 1957. Today, BSE is one of the top exchanges in the world based on market capitalization, the number of listed companies, and the trading volume.
Established in 1992, the National Stock Exchange (NSE) is the largest stock exchange in India in terms of market capitalization and the number of trades per day. It competes with BSE in terms of trading, listing, and market cap. NSE is a fully automated electronic trading exchange, and it deals in cash and derivatives segments, including equities, currencies, and commodities.
Significance of Trading Holidays
Trading BSE holidays are essential in the stock market because they allow traders and investors to plan their trading activities in advance. These holidays provide an opportunity for participants to take a break from the daily grind of the stock market and regroup. Trading holidays also allow market operators to perform essential maintenance tasks, upgrade systems, and perform safety checks.
Furthermore, trading NSE Holidays also have a direct impact on market sentiments and trading volumes. On days when the market is closed, there is a higher likelihood of volatility in trade volumes. Hence, traders and investors often follow the trading holidays to get a better sense of the market and optimize their trading decisions.
Understanding the trading calendars of BSE and NSE is crucial for all investors and traders. The days on which the markets are closed often affect the trading volumes and market sentiments, and hence, planning your trades and investment activities around these holidays is essential. The trading calendars of both exchanges are relatively similar, and hence, it is not very difficult to align your investment activities with the holidays. Happy investing and happy trading