Stock Market Holiday Alert: Are NSE and BSE Open on Eid-e-Milad and Raksha Bandhan 2026?
The NSE and BSE will remain open for trading on both Eid-e-Milad on August 26 and Raksha Bandhan on August 28, 2026. Neither date is listed as a full trading holiday in the 2026 stock-market holiday calendar. However, August 26 carries an important distinction: it is a settlement/clearing holiday, even though trading remains open.
This means investors can trade normally on both days in the applicable market segments, but trades around August 26 may have a different settlement timeline. For active traders, delivery investors and anyone expecting sale proceeds to become available quickly, that distinction matters.
Is the Stock Market Open on Eid-e-Milad, August 26, 2026?
Yes. NSE and BSE will be open for regular trading on Wednesday, August 26, 2026.
Eid-e-Milad is not included in the 2026 NSE F&O trading-holiday list. The official NSE calendar lists the next full trading holiday after the June 26 Muharram holiday as September 14, 2026, for Ganesh Chaturthi.
However, investors should not confuse a trading holiday with a settlement holiday.
August 26 is listed as an Id-E-Milad settlement holiday. NSE's settlement rules state that intervening holidays, including bank and exchange holidays, are excluded when determining settlement dates.
So the market can remain open while settlement-related processes are affected.
What Does the Settlement Holiday Mean?
In simple terms, you can buy or sell shares on August 26, but the transfer of securities and funds for applicable trades does not follow the same settlement timetable as an ordinary working day.
NSE follows a T+1 rolling settlement system for normal equity transactions. T+1 means eligible trades are generally settled on the next working day, excluding applicable holidays.
Therefore, investors trading around August 25–26 should pay attention to when shares and funds will actually become settled.
This is especially relevant if you sell shares and are planning to withdraw or reuse the proceeds immediately.
Is the Stock Market Open on Raksha Bandhan, August 28, 2026?
Yes. NSE and BSE will also remain open on Friday, August 28, 2026, for Raksha Bandhan.
Raksha Bandhan falls on August 28 this year, but the festival is not listed as a stock-market trading holiday. Recent market-calendar reports confirm that equity, equity derivatives and other applicable segments will operate normally on the day.
The next scheduled full trading holiday after August is September 14 for Ganesh Chaturthi.
So investors do not need to wait until the following Monday to trade after Raksha Bandhan. Friday, August 28, will be a normal trading day, subject to the regular exchange schedule.
Eid-e-Milad vs Raksha Bandhan: What Is the Difference?
The two dates may look similar from an investor's perspective because both are major festivals, but their impact on the stock market calendar is different.
| Date | Festival | NSE/BSE Trading | Settlement Impact |
|---|---|---|---|
| August 26, 2026 | Eid-e-Milad | Open | Settlement holiday |
| August 28, 2026 | Raksha Bandhan | Open | No full-market holiday |
The key takeaway is that August 26 is not a market closure, but it is important for settlement planning.
August 28, meanwhile, is a normal trading day under the exchange holiday calendar.
What Are the Normal NSE Trading Timings?
Since neither August 26 nor August 28 is a full trading holiday, the normal equity-market schedule applies.
For the regular equity market:
Pre-open session: 9:00 AM to 9:15 AM
Normal trading: 9:15 AM to 3:30 PM
Closing session: 3:30 PM onward, according to the applicable exchange schedule
The standard NSE equity market operates on weekdays other than Saturdays, Sundays and exchange-declared holidays.
Investors should still check their broker's notices for any segment-specific changes, particularly if they trade currencies, commodities, derivatives or other products.
What Happens to Shares Bought Before August 26?
This is where the August 26 settlement holiday becomes important.
Suppose an investor buys delivery shares on Tuesday, August 25.
Under a normal T+1 cycle, the transaction would ordinarily settle on the next working day. But because August 26 is a settlement holiday, the applicable settlement date is pushed to the next eligible settlement day.
NSE explicitly states that holidays falling between the trade date and settlement date are excluded when calculating the settlement cycle.
As a result, investors should not assume that shares purchased on August 25 will be fully settled on August 26.
This can matter for traders who are planning to sell newly purchased shares immediately.
What Happens If You Sell Shares?
The same principle applies to sale proceeds.
If you sell delivery shares around the settlement holiday, the trade can be executed, but the settlement and availability of funds may follow a different schedule.
That does not mean the money is lost or that the transaction has failed. It simply means the clearing and settlement process takes account of the holiday.
Broker platforms can also have their own rules regarding when funds become withdrawable or usable for another transaction. Investors who need the money for an urgent payment should therefore check the broker's specific settlement notification.
Does Eid-e-Milad Affect F&O Trading?
The August 26 holiday should not be treated as a blanket closure of all market activity.
The NSE's official 2026 F&O holiday list does not include August 26 as a trading holiday.
That means eligible derivatives trading can continue according to the exchange schedule.
However, settlement calendars can be different from trading calendars. This is one reason investors should distinguish between "market closed" and "settlement holiday."
For active F&O traders, checking the contract-specific settlement and expiry calendar remains important.
What About Mutual Funds?
Mutual funds follow their own transaction and settlement mechanisms, and investors should not automatically apply stock-market settlement rules to every mutual-fund transaction.
The NSE maintains a separate mutual-fund settlement calendar, while individual fund houses can have scheme-specific rules and cut-off times.
Therefore, if you are placing a mutual-fund purchase, redemption or switch around August 26, check the applicable scheme and platform schedule rather than assuming the transaction will be processed exactly like an equity trade.
Does a Settlement Holiday Affect Stock Prices?
Not directly.
A settlement holiday does not automatically make the market bullish or bearish. Stock prices continue to respond to earnings, global markets, crude oil prices, interest rates, economic data, institutional flows and company-specific developments.
The main effect of a settlement holiday is operational.
For long-term investors, a one-day settlement adjustment generally does not change the underlying investment thesis. For short-term traders, however, the timing of funds and securities can be important.
This is why the August 26 settlement holiday deserves attention even though the market itself remains open.
What Is the Next Stock Market Holiday After August?
According to the 2026 trading calendar, the next scheduled full trading holiday after the August dates is:
September 14, 2026 — Ganesh Chaturthi.
After that, the calendar includes holidays for Mahatma Gandhi Jayanti on October 2, Dussehra on October 20, Diwali-Balipratipada on November 10, Prakash Gurpurb Sri Guru Nanak Dev on November 24 and Christmas on December 25.
Investors should remember that some holidays fall on weekends and therefore do not create an additional weekday market closure.
What Investors Should Remember
The most important distinction is straightforward:
August 26 — Eid-e-Milad: NSE and BSE are open for trading, but it is a settlement holiday.
August 28 — Raksha Bandhan: NSE and BSE are open, and the day is not listed as a full trading holiday.
For investors, the August 26 settlement issue is the one to watch. If you are buying or selling shares around August 25–26, check when your transaction will actually settle and when the related funds or securities become available.
For Raksha Bandhan, there is no need to expect a market shutdown simply because banks, offices or institutions in some locations may observe the festival as a holiday.
Bottom Line
NSE and BSE will remain open on both Eid-e-Milad, August 26, and Raksha Bandhan, August 28, 2026. The important catch is that August 26 is a settlement holiday, so investors may experience a change in the normal T+1 settlement timeline.
For traders, the practical takeaway is to distinguish between trading holidays and settlement holidays. You can place trades when the market is open, but shares and funds may not settle on the same timetable.
The next full stock-market trading holiday is scheduled for September 14, when the exchanges will close for Ganesh Chaturthi.
Follow the blog for more verified updates on Indian stock-market holidays, NSE, BSE, trading, investing and personal finance.
This article is for informational and educational purposes only and should not be considered investment advice.
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