Is Diwali 'Muhurat Trading' on October 31 or November 1? Know all about BSE, NSE one-hour trade
Diwali 'Muhurat Trading': Muhurat trading is an auspicious session to mark the beginning of a new Samvat 2079 -- the Hindu calendar year that starts on Diwali.
by Edited By: Arushi Jaiswal · India TVDiwali 'Muhurat Trading': A special one-hour trading session, known as Muhurat Trading, is held in the stock market on Diwali, marking the start of the new Samvat 2081. During this session, many investors participate in buying and selling shares as a symbolic gesture in the auspicious period.
The session also marks the beginning of a new Samvat -- the Hindu calendar year that starts on Diwali -- and it is believed that trading during the 'Muhurat' or auspicious hour brings prosperity and financial growth for the stakeholders.
Diwali Muhurat Trading: Date and Time
This year, both BSE and NSE will conduct Muhurat trading on Friday, November 1, according to an official notification from the NSE. Although Diwali falls on October 31 in most regions, some areas will celebrate it on November 1 due to differences in local customs.
As per the NSE, the pre-opening session is scheduled to commence at 5:45 pm. and will last for 15 minutes. After the pre-opening session, the stock exchanges, NSE and BSE, will hold their annual Diwali Muhurat trading session on Friday, November 1, 2024, from 6:00 pm to 7:00 pm.
The market will remain closed for regular trading on Diwali, but a special trading window will be open for one hour in the evening. The exchanges announced that the pre-opening session will take place from 5:45 pm to 6:00 pm.
History of Muhurat Trading
In recent years, the Muhurat Trading Day has consistently seen gains. The indices rose by around 1% in 2022, 0.5% in 2021, 0.47% in 2020, and 0.37% in 2019, while in 2018, there was a 0.7% increase. However, slight declines were observed in 2017 (-0.6%), 2016 (-0.04%), and 2012 (-0.3%). The most notable Muhurat Trading session was on October 28, 2008, during the global financial crisis, when the index surged by almost 6%, marking the highest gain for this session to date.
Advice to invest cautiously
Market analysts said that Diwali is considered to be the ideal time to start anything new. Investors are said to benefit from trading during this session all through the year.
Since the trading window is only open for an hour, markets are known to be volatile. The focus might not be on profitability as much as it might be on the gesture, they added. Trading would take place across various segments like equity, commodity derivatives, currency derivatives, equity futures & options, and securities lending & borrowing (SLB) in the same time slot.
What is Muhurat Trading?
Muhurat trading is an auspicious session to mark the beginning of a new Samvat 2079 -- the Hindu calendar year that starts on Diwali. Every year on Diwali evening, the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) conduct a special one-hour trading session. It is believed that trading during the 'muhurat' or auspicious hour brings prosperity and financial growth to the stakeholders.
Significance of Muhurat trading
During the Muhurat trading session, investors and brokers buy value-based stocks, which are good for the long term. It is believed that during the particular Muhurat, planets are aligned in such a way that brings good fortune to investors throughout the Samvat. Stocks bought on this occasion are also kept as lucky charms by many investors.
Since Diwali is considered an auspicious day to begin anything new, investors also believe buying and passing shares to the next generation is auspicious. Because of these developments, it is observed that markets typically move upward during the Muhurat trading session. The investor sentiment is positive with a majority of buying orders across segments. Stock prices remain stable on this day as most investors prefer buying rather than selling. Investors typically engage themselves in value investing during Muhurat trading.
(With PTI inputs)
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