Zerodha CEO Nithin Kamath has criticised the closure of India’s stock markets on January 15, calling it a case of poor planning and a lack of understanding of global market linkages. Trading on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) was suspended for the day as Maharashtra declared a public holiday for the Brihanmumbai Municipal Corporation (BMC) elections.
In a post on social media platform X, Kamath questioned why a city-level civic election should halt national stock market operations. He highlighted that Indian markets are deeply connected to global financial systems, with significant participation from foreign investors. Shutting exchanges, he said, sends the wrong signal to international markets and disrupts trading continuity.
Kamath warned that such decisions fail to account for “second-order effects” — broader consequences like lost trading opportunities, market inefficiency, and inconvenience to domestic and global investors. Quoting legendary investor Charlie Munger, he added, “Show me the incentive and I will show you the outcome,” suggesting that outdated practices persist because there is little motivation to change them.
Market analysts echoed Kamath’s concerns, noting that frequent or unnecessary market holidays can affect investor confidence at a time when India aims to attract long-term global capital. They said consistency in market operations is critical for both domestic and international investors.
The market shutdown came amid a volatile start to 2026 for Indian equities, following a challenging 2025 marked by global uncertainties. Trading resumed on January 16, with investors hoping markets quickly regain momentum after the brief disruption.
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