Confused about trading on the May 12, 2025, Buddha Purnima settlement holiday? You’re not alone.
May 12, 2025, will be a settlement holiday on account of Buddha Pournima. Markets will be open, yet the clearing and depository teams will take a breather. A settlement holiday is a day when trading is possible, but clearing and settlement are closed for Payin and Payout of stocks traded and funds. Yet, with a little planning, you can surf this temporary liquidity wave rather than wipe out.
Trading Screens On, Clearing Desks Off: Why 12th May Matters?
Indian exchanges shifted to a one-day settlement cycle (T+1), so clearing houses usually square positions the next business day.
Equity, F&O, and commodity markets run on regular hours; however, the currency segment rests completely. Because settlement nets street-wide obligations, any pause forces an extra buffer day that traders nickname “rolling Monday”.
Liquidity stays healthy, yet short-delivery risk rises if you ignore obligations.
Where Will Your Profits Sit Until 13 May?
Because depositories stay shut, intraday gains booked on Friday, 9 May will not reflect as withdrawable funds on Monday.
The same rule applies to F&O mark-to-market credits and commodity premiums. You can still view unsettled amounts under the collateral column in many broker dashboards, yet they won’t power new buys. Mutual-fund redemptions also face a one-day postponement owing to the depository closure. Expect these monies, plus any fresh profits from Monday, to settle by Tuesday evening, 13 May. Plan margin needs accordingly, and avoid BTST in MTF or T2T stocks; the system blocks such orders automatically.
Market Mood: Dip or Opportunity After War-Buzz Sell-Off?
Geopolitical headlines rattled Dalal Street last week. The Sensex slid 1.1 % to 79,454 while the Nifty 50 fell the same, ending a three-week rally. Mid- and small-caps proved steadier, losing under 0.3 %. Roughly ₹2 lakh crore in market value evaporated in Friday’s session. Short-term fear often offers disciplined traders sweeter entry points. Yet India-Pakistan tensions can spike again, so maintain hedges with protective puts or balanced spreads until volatility cools.
Checklist for Smart Monday Moves
- Top up margins before Friday’s closing bell; withdrawals stall until Tuesday.
- Refrain from selling shares bought on 9 May; they remain unsettled.
- If you trade options, premium credits show on ledger but stay locked.
- Currency traders, enjoy a long weekend; that segment sleeps.
- Set alerts for global cues on crude or the rupee; they sway sentiment after holiday sessions.
- Confirm holidays on bseindia.com’s Trading Holidays tab for future planning.
Stay nimble, use tight stops, and treat this “technical” holiday as a chance to review strategies rather than chase noise.
Disclaimer: The views and investment insights provided here are based on publicly available information and do not constitute financial advice. Readers are advised to conduct their own research or consult certified financial experts before making investment decisions
