'Poor planning': Nithin Kamath on markets shutdown for Mumbai civic polls

In a post on X, Zerodha co-founder Nithin Kamath said the closure of markets with 'international linkages' for a local poll showed a 'serious lack of appreciation for second-order effects'

Zerodha co-founder Nithin Kamath on Thursday criticised the shutdown of Indian stock exchanges for Mumbai’s municipal elections, calling it a sign of "poor planning" and a lack of regard for wider consequences.

 

In a post on X, Kamath said the closure of markets with "international linkages" for a local poll showed a "serious lack of appreciation for second-order effects".

 

Quoting legendary investor Charlie Munger, Kamath said, "Show me the incentive and I will show you the outcome".

 

"The holiday exists because no one who matters has any incentive to oppose the market holiday," he said, adding that the closure indicates how far the Indian markets have to go before global investors take it seriously.

 

 

Indian exchanges BSE and the National Stock Exchange (NSE) on January 12 announced the closure of trading on Thursday in the equity segment, equity derivatives, commodity derivatives and electronic gold receipts due to elections to Mumbai’s civic body, the Brihanmumbai Municipal Corporation (BMC). The city serves as the headquarters for both major exchanges.

 

The market holiday was announced to enable large numbers of financial services professionals—including brokers, traders and exchange staff—to take part in the municipal elections.

 

The holiday comes amid a subdued market, with benchmarks closing in the red for a second straight session on Wednesday. The BSE Sensex fell 244.98 points, or 0.29 per cent, to close at 83,382.71, while the NSE Nifty 50 dropped 66.70 points, or 0.26 per cent, to end at 25,665.60. IT and FMCG stocks led the declines, with Asian Paints and TCS among the biggest laggards. Metal shares such as Tata Steel and PSU banks, however, offered some support.