As the festival of lights approaches, investors in India gear up for the much-anticipated Diwali Muhurat trading session on Friday, November 1, from 6:00 PM to 7:00 PM. This special trading event is not just a symbolic gesture; it represents an auspicious time for investors to kick-start their financial journey in Samvat 2081.
Muhurat trading has become a cultural cornerstone for the Indian stock market, viewed as an opportunity to invite prosperity and success into investment portfolios. Historically, this trading session has shown a tendency to deliver positive returns, with indices closing in the green during 13 of the past 16 years.
The Indian equity market has already demonstrated robust performance in 2024, with the Nifty index recently peaking at 26,277. However, the market faced challenges in October, including significant Foreign Institutional Investor (FII) outflows exceeding ₹90,000 crore. Despite these fluctuations, many traders see the upcoming Muhurat session as a turning point, marked by cautious optimism.
In the previous year’s Muhurat trading, which took place on November 12, 2023, the S&P BSE Sensex rose by 355 points to close at 65,259, a gain of 0.55%. Similarly, the Nifty50 increased by 100 points, reaching 19,525, marking a 0.52% rise. Mid and small-cap stocks outperformed, with the BSE Midcap index climbing by 0.67% and the BSE Smallcap index surging by 1.14%. Prominent gainers included Coal India, UPL, Infosys, and Eicher Motors, showcasing the potential of the Muhurat trading session.
While the auspicious nature of Muhurat trading is acknowledged, experts advise caution. Due to limited liquidity during this special trading period, many recommend that investors make only token investments rather than larger trades. Consulting with financial advisors can be beneficial, especially for those uncertain about which stocks to choose.
Market analysts are optimistic about potential dips in the market serving as buying opportunities. Pranav Haridasan, MD and CEO of Axis Securities, noted that Samvat 2081 begins amidst significant global economic shifts, including a recent 50 basis point rate cut by the US Federal Reserve. This backdrop suggests a possibility for further rate adjustments by year-end, in contrast to the Reserve Bank of India’s stance of maintaining rates amidst inflationary concerns.
As investors prepare for Muhurat trading, the event remains a blend of cultural significance and financial aspiration, allowing participants to engage with the market in a manner that honors tradition while seeking growth.
ALSO READ: Moderate Expectations, GDP Growth And Inflation Among Key Triggers In Samvat 2081
The Indian cricket team wore black armbands on Day 2 of the fourth Test in…
A viral video shows Haryana State Women Commission chairperson Renu Bhatia threatening an NRI man…
The Indian Coast Guard rescued nine crew members from a sunken vessel in the Arabian…
Former PM Manmohan Singh, who died on December 26, had once contemplated military action against…
Ranveer Allahbadia, also known as BeerBiceps, and his girlfriend were rescued from a life-threatening underwater…
Manmohan Singh, a former prime minister of India who died on December 26, 2024, at…