In India, a holiday is observed every year for Muharram, but in 2025, there is a unique situation causing confusion. Reports circulating on social media suggest that banks and stock markets will be closed on July 7 (Monday) due to the Muharram holiday. This has led to widespread uncertainty about whether the holiday will fall on July 6 or July 7. The Islamic calendar, which is based on lunar sightings, has not yet confirmed the exact date for the observance of Muharram.

Muharram marks the first month of the Islamic New Year, with the 10th day known as 'Ashura,' commemorating the martyrdom of Imam Hussain. On this day, many government offices, banks, schools, and markets typically close. In 2025, Muharram could either be on July 6 (Sunday) or July 7 (Monday), with the final confirmation dependent on the sighting of the moon. If Muharram is observed on July 6, there will be no additional holiday since it falls on a Sunday. However, if it is on July 7, a holiday may be declared for that Monday.

Should Muharram be on July 7, banks and government institutions in various regions, particularly in states like Uttar Pradesh, Maharashtra, West Bengal, and Telangana, are likely to announce closures.

The stock market is already closed on Sundays, so July 6 will not affect trading. If Muharram is confirmed for July 7 and a holiday is declared, trading will be suspended across all major stock exchanges in India, including BSE and NSE. This suspension would impact equity and derivatives trading, currency, interest rates, and securities lending and borrowing services. Currently, the official trading calendar does not indicate a holiday on July 7, but this will depend on the moon sighting and government announcements.

Muharram is one of the four sacred months in Islam. The 10th day, known as 'Ashura,' marks the martyrdom of Imam Hussain in the Battle of Karbala in 680 AD. The Shia community observes this day with mourning and processions, commemorating it with reverence and sorrow across the nation.