The National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) are set to stay closed on Wednesday, November 20, 2024, a decision stemming from the Maharashtra Assembly elections. This particular closure is the third one in the month, following public holidays on November 1 for Diwali's traditional Muhurat trading session and November 15 for Guru Nanak Jayanti. Maharashtrians will head to the polls for the legislative assembly vote, which comprises 288 seats up for grabs, with the vote count scheduled for November 23.
Public Life Disruptions
These election events impact more than just trading. The Maharashtra government has announced a statewide public holiday in all polling areas, resulting in closures for banks, schools, and even liquor stores. However, everyday necessities won't come to a halt—public transportation and healthcare facilities will continue their services uninterrupted.
Turning to commodities markets, the Multi Commodity Exchange (MCX) plans a partial shutdown, ceasing morning operations yet resuming with the start of its evening trading session. It's a move aimed at balancing civic participation and market functionality.
Political Tensions and Market Dynamics
The elections spotlight a critical face-off between the reigning Mahayuti alliance, consisting of the Shiv Sena, BJP, and a faction of the NCP, against the rival Maha Vikas Aghadi, involving the Shiv Sena UBT, Congress, and another NCP faction. As tensions rise, marking each political move with significance, investors are keenly observing the outcomes, knowing how such events sway economic policies and market sentiments.
Reflecting on past market holidays, 2024 has already seen notable closures—like on January 22 for the Ram Mandir inauguration and May 20 during the Lok Sabha elections. Financial spectators anticipate the next pause, slated for December 25 in observance of Christmas.
Interestingly, as of November 19, just ahead of this election-driven shutdown, the market showed positive movement. Notably, the Nifty50 climbed by 1.29%, and the S&P BSE Sensex rose by 1.34%. Traders and investors remain on edge, balancing anticipation with market resilience in this politically charged environment.