Muhurat Trading: The festive season of Diwali has arrived, a highly anticipated occasion for investors and traders, often considered a propitious time for financial endeavours. The Hindu calendar underscores the importance of ‘Muhurat’, a propitious moment for commencing beneficial activities. As Diwali approaches, brokerage houses traditionally issue stock picks for the upcoming Samvat year.
What Is Muhurat Trading?
Muhurat Trading is a distinctive session held annually on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) in India, on the day of Diwali. The term “muhurat” signifies an auspicious moment, and this special session, lasting approximately one hour in the evening on Diwali, inaugurates the traditional Hindu accounting year, Samvat. During this session, share market witnesses strong participation, and market sentiment is largely positive.
In a long-standing tradition, stockbrokers commence their new year on Diwali, utilizing the propitious Muhurat timing to establish new settlement accounts for their clients. The custom of this trading session is connected to several faiths. Historically, Gujarati merchants and investors traditionally purchased shares during Muhurat, whereas Marwari traders and investors opted to sell equities, adhering to the belief that money should not be kept at home on Diwali. Presently, this session is largely a symbolic gesture.
What Happens During This Session?
The stock exchanges designate a specific evening time for conducting the Muhurat Trading session. Prior to the commencement of the session, many brokers and traders observe the traditional Chopda Pujan ritual. The worship their account books, and trade tools during this period. The Muhurat Trading session, spanning one hour, functions identically to a typical trading day. The trade is done like a normal trading session.
During the trading session, investors typically perform Lakshmi Pujan, a sacred ritual worshipping Goddess Lakshmi. The conclusion of the Muhurat Trading session is done with a sense of celebration on the trading floors of major stock exchanges.
Timings Of The Session?
The scheduled date for Muhurat Trading this year is Friday, November 1, 2024.
Pre Open – 5:45 PM to 6:00 PM
Normal Market – 6:00 PM to 7:00 PM
Closing Session – 7:10 PM to 7:20 PM
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