Ram Temple Inauguration: Impact on Financial Markets and Banking Operations : Stock Market Holiday Jan 22
On the preceding Saturday, the BSE Sensex witnessed a dip of 260 points, Stock Market Holiday Jan 22 settling at 71,424, while the NSE Nifty50 closed 51 points lower at 21,572. However, on Monday, January 22, both Sensex and Nifty, the prominent equity benchmarks, will be closed due to the Maharashtra government declaring a holiday in observance of the consecration of the Ram Mandir in Ayodhya. The NSE Nifty, in a circular, also confirmed the closure of the currency derivative segment on Monday.
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The closure extends to various financial activities, including transactions and settlements in government securities (both primary and secondary markets), foreign exchange, money markets, and rupee interest rate derivatives, as stated by the Reserve Bank of India (RBI). All pending transactions’ settlements will be deferred to the subsequent working day, according to a release from the RBI. Additionally, the three-day variable rate repo (VRR) auction held on Friday, originally set to reverse on Monday, will now be reversed on January 23.
Furthermore, the previously announced three-day VRR auction has been canceled. Instead, a two-day VRR auction will take place on Tuesday.
In light of these developments, all bank branches in Uttar Pradesh and some other states will remain closed on Monday. Public sector banks (PSBs), insurance companies, financial institutions, and regional rural banks (RRBs) across the country will observe a half-day closure to mark the event. However, private sector banks will remain open since it is a regular working day, as per the RBI’s holiday list.
The Department of Personnel and Training has issued an order for a half-day closure of central government offices on Monday, extending to public sector banks, insurance companies, financial institutions, and RRBs. This measure aims to facilitate employees’ participation in the Ram Lalla Pran Pratishtha celebrations, as per a notification from the finance ministry on Thursday.
In summary, the inauguration of the Ram Temple has led to the closure of financial markets and certain banking operations on Monday, impacting various sectors and prompting adjustments in scheduled auctions.
