Stock market holidays: As the year draws to a close and global markets gear up to welcome the New Year, several major stock exchanges will observe a holiday or operate with shortened trading sessions on December 31 and January 1.
With major global markets closed on or ahead of New Year’s Day, most institutional investors have already closed out their positions, resulting in thin trading volumes commonly seen in the final days of the year.
From Asia to Europe, the majority of the stock markets are closed on Thursday, New Year’s Day, while some are also witnessing truncated sessions or holidays on Wednesday and Friday. However, Indian stock market investors will see a full week of trading, but the triggers will remain sparse.
Stock market holiday on Wednesday (December 31)
Among the major global markets, Australian bourses will see a shorter trading day on December 31, along with New Zealand, Hong Kong, Spain and the UK, among a few other European nations as listed below.
Meanwhile, South Korea’s KOSPI and Japan will be closed for trading tomorrow among major Asian markets.
The US stock market will remain open for trading on Wednesday, December 31.
Stock market holiday on Thursday (January 1)
More global markets are closed on New Year’s Day. In Asia, China, Japan, Hong Kong and South Korea markets will be shut, along with Taiwan. These are the major markets of the region and set the tone for trading for Indian bourses as well.
Australia and New Zealand’s stock bourses will be shut. The “mother market” US will also observe holidays. Elsewhere in Europe, German, French and UK markets will be closed on New Year’s Day.
Will Indian markets remain closed on New Year’s?
For Indian investors, the key point to note is that neither December 31 nor January 1 is a trading holiday, which is always the case. According to the stock market holiday calendar shared by bourses, both BSE and NSE will be open for trading over the next two days.
That said, even as the Indian markets are open, trading activity on these dates would be subdued, mirroring the global holiday mood. Institutional participation is typically low, and benchmark indices often move within narrow ranges.
The first trading holiday of 2026 will be on January 26 to mark Republic Day celebrations.
Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said a clear directional change will happen only early in the new year when large institutions are back in action.
“It would be better for investors to watch the market now and wait for new triggers and new directional moves. However, weakness in the market can be used to nibble at high-quality large caps.”