Mumbai: Muhurat Trading is the special trading session. It is held on the occasion of Diwali. During this session, the exchanges are open only for this special session where traders and investors can punch in token trades to mark the start of the new year. It is held in the evening during the auspicious period of Laxmi Pujan.
The term “muhurat” refers to an auspicious time, and trading during this period is believed to bring prosperity and good fortune to traders and investors. Muhurat Trading was officially recognised when the BSE introduced it in 1957. The NSE followed suit in 1992.
The Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) will host 1-hour special Muhurat trading for the new Samvat. This sessions mark the beginning of a new Hindu calendar year, also known as Samvat. It is believed that conducting trading during the auspicious hour brings prosperity and financial growth to investors. All trades executed during the Muhurat trading session are settled on the same day.
The National Stock Exchange (NSE) will hold its annual Diwali Muhurat trading session on Friday, November 1, 2024, from 6:00 PM to 7:00 PM.While regular trading will remain closed for Diwali, the special one-hour Muhurat trading session will be open in the evening. A pre-opening session is scheduled from 5:45 PM to 6:00 PM, just before the main trading window. Bombay Stock Exchange has yet not released its official announcement regarding the timing of Muhurat Trading.
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Features of Muhurat Trading:
Special Timing: It is usually held in the evening for about an hour on Diwali day, which marks the start of the new financial year in the Hindu calendar.
Auspicious Occasion: The session coincides with Lakshmi Puja, dedicated to the Hindu goddess of wealth, Lakshmi.
Participation of Traders and Brokers: Investors, including institutional investors and family-run trading accounts. Many traders place symbolic buy or sell orders.
Pre-defined Session: The stock exchanges in India (NSE and BSE) announce the exact time of the session in advance.
Importance of Muhurat Trading:
Symbolism of Prosperity: It is seen as a ritual to invite wealth and prosperity, marking the start of a new financial year for some traders.
Sentiment over Strategy: Many investors make purchases during Muhurat Trading as a symbolic gesture, driven more by tradition than by strategic investment motives.
Positive Market Sentiment: The mood during Muhurat trading is generally upbeat, with many investors expecting positive returns from stocks bought on this day.
Low Volatility, High Sentiment: Although trading volumes might be lower compared to normal sessions, the sentiment is generally optimistic, with many seeing the day as a good omen for the year ahead.
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